Breakdown in Quant Funds
By proceeding, I acknowledge that I have read and understood the Disclaimer and Copyright Statements .
Market inflection points (tops and bottoms) are characterized by extreme irrationality on the part of investors. At The MAC, we track several indicators that measure how “irrational” the market is being. In June, these indicators turned decidedly bearish. However, they have recovered over the last couple of months which would mean that the market is acting more “rational” and signal that the likelihood of an imminent bear market is seemingly diminishing. However, before I turned bullish, or at least neutral, on the market I discovered a strange occurrence that has made me increasingly skeptical of this bull market’s ability to rage on. Read the rest of this entry »
