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.
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