As the market continues to seek out its maximum stupid price limit, it’s now decision time for investors.
If you’re still long stocks and bonds at this point: Do you now sell to protect your gains?
If you’re skeptical of today’s prices and sitting in cash: Is now the right time to start shorting the market?
If you’ve recently been laid off: Do any of the new options offered by the CARES Act that enable you to access retirement funds without penalty make sense for you?
With markets this overextended, your window of time to take action will likely be quite brief. An end to the currently rally could happen extremely quickly and brutally.
What make us say this? Because here’s an example of the level of overvaluation we’re dealing with:
The Russell 2000 index — at a P/E ratio of 70x(!!) — has never been so richly valued. Remember: these are the smaller, weaker publicly traded companies, a material number of which will likely be going bankrupt later this year.
Over 40 million US workers laid off (so far). Q2 2020 GDP now expected to be down over -50%(!!). And half of all US small businesses expected to close down permanently.
And if you believe that fundamentals don’t matter, that only Fed liquidity does; note that the Fed’s buying spree has been tapering off for a month now:
Without sufficient liquidity, how long can the market remain at these ridiculous prices?
by mki-2-2 
