July 10, 2017

Reasons July might be the month to sell stocks

The markets continues to trend higher with seemingly everyone bullish on equities. Doug Kass thinks now might be a good time to sell stocks due to a multitude of reasons. He writes on RealClearMarkets,

"After More Than Eight Years Of Monetary Largesse, The Federal Reserve and Other Central Banks Are Taking Away the Punch Bowl: The Fed is raising rates and plans to institute quantitative tightening. 
Valuations Are Stretched: Most valuation metrics are still in the 95% decile, the difference between GAAP and non-GAAP earnings has never been wider, CAPE ratio at the second highest in history, etc. 
Investor Sentiment Remains Bullish; Importantly, Few Fear a Larger Market Drawdown: The consensus is uniformly bullish for the intermediate term.
The Proliferation of Passive Investing (ETFs, Risk Parity etc.) raise the risk of a structural breakdown in the Markets."