The Stock Market - Two Other Notes

There are two other aspects I would like to highlight with regard to the stock market.

First, per my last two posts, my analysis indicates the entire stock market is currently a bubble.   Given that conclusion, as well as my opinion that there are various other asset bubbles in existence right now, I would like to highlight a post I wrote on May 27, 2010 titled "Bubble Investing."

Second, I view the stock market as exhibiting characteristics of a "crowded trade."  I recently wrote of this condition on February 28 in "The Stock Market as a 'Crowded Trade'."

A Special Note concerning our economic situation is found here
SPX at 1308.44 as this post is written

The "Crowded Trade" Concept

Here is a story from Friday on CNBC.com that caught my interest:

http://www.cnbc.com/id/33339374

It is titled "Stocks, Gold Are Crowded Trades: Hugh Hendry"

I found it interesting for two main reasons. First, it discusses the concept of the "Crowded Trade." This is a phrase that isn't often heard these days. Nonetheless, I think the concept is important to consider, especially in today's investment environment.

Second, I found this interesting:

"The remarkable thing about the stock market is 'the absence of volume associated with it'," Hendry said.

Compared with previous rebounds in stocks from previous recessions, volume in this recovery from the March lows is 60 percent lower, according to Hendry."


SPX at 1089.31 as this post is written