Despite the rebound off the August low and the bounce attempts in November and December, I haven’t liked this market since last summer. These issues have been discussed at Leavitt Brothers for several months, so it’s time to summarize everything in one place.
Here are 12 reasons to not like this market. So that a post isn’t too long, the list is broken up into individual, bite-size pieces.
The Market Has Bad Breadth
The Small Caps Have Been Lagging
Higher Rates and the Absence of QE
Defensive Leadership
High Stock Ownership Relative to Assets
High Percentage of Unprofitable IPOs
High Margin Debt
High Car Inventories
Deflationary Pressures
Junk Bonds are Weak
Strong Dollar
Strong Bonds
