Negative News Already Priced-in?...Not Even Close Yet.

Just because uncertainty is high and sentiment is bearish, it does not mean the stock market has become cheap...or even fairly value. It's still very expensive.

• Just because the level of uncertainty is extremely high…and just because the level of bearishness is high in some polls…does not mean that the market has fully priced-in all of the negative news. In fact, it hasn’t even come close to pushing the stock market to a level that fairly reflects the fundamental outlook for the US over the next 12-18 months.

• The yield on the US 10yr note is testing a key support level. So, if it falls much further, it will be bullish for investors of long-term Treasuries, but it might not be bullish for equity investors for quite a while.