Today’s macro environment shares some “uncomfortable” similarities with some major stock market tops of the past (from The Variant Perception Blog on June 30)…

1929, 1973 and the dotcom bubbles all saw sustained monetary policy tightening and a clear divergence of surging bubble stocks vs the average stock moving sideways/falling. The 1929 top was preceded by 18 months of tightening policy and a 9-month period of divergence between surging bubble stocks (utilities + tech, thanks to buzz around new
Read More …

Vanguard data show America’s retirees are betting heavily on stocks. What could go wrong? (from The Wall Street Journal on July 4)…

Older Americans keep rolling the dice in the stock market, ignoring the conventional wisdom to protect their nest eggs by shifting more of their investments to bonds. Nearly half of Vanguard 401(k) investors actively managing their money and over age 55 held more than 70% of their portfolios in stocks. In 2011, 38% did so.
Read More …