By Pater Tenebrarum
Investors are Oblivious to the Market’s Downside Potential
This is a brief update on a number of sentiment/positioning indicators we have frequently discussed in these pages in the past. In this missive, our focus is exclusively on indicators that are of medium- to long-term relevance to prospective stock market returns. Such indicators are not really useful for the purpose of market timing - instead, they are telling us something about the likely duration and severity of the bust that will follow on the heels of the current market mania. The first chart