Here's another milestone in the current global recovery: the market cap of global equities has risen $25 trillion from last year's low, a very impressive gain of no less than 100%. Millions of pessimists hanging out in cash since then have left a lot of money on the table.
Also, the equity markets are now substantially outperforming many bond markets. While it is a fact that the vast majority of bond money will never move to equities, the size of those markets dwarf stocks and it would only take a small reallocation to move equities much higher. The liquidity is there. All it takes is the conviction. Fear has, until recently, ruled...should greed return, that conviction can happen quickly.
ReplyDeleteEvidence that the above is NOT occuring now comes from CNBC:
ReplyDeleteGOLDMAN INCREASING SIZE OF 50 YEAR DEBT OFFERING
The $250 million offering was so oversubscribed Goldman Sachs increased it over fivefold to $1.3 billion.