The Ten Charts Ignored By Bulls

In addition to our recent discussion of the macro-economic data in the US rolling over, and the epic proportions of net risk-taking longs, Credit Suisse outlines ten further indications that equities might be due for a 'consolidation'. Translating from sell-side research gobbledygook into reality, equity bulls are merely demonstrating the traditional phases of momentum-inspired euphoria in the face of ongoing fundamental contraction (not to mention a decline in consumption and marginal US purchasing power) - and earnings expectations, US fiscal tightening, and a modest rise in deficit-increasing real bond yields will not help. Via Credit Suisse: 1) Global risk appetite is extended Wilmot’s global risk appetite has risen to 1-sigma (i.e. standard deviation) above its norm, while our equity sector risk appetite is now 0.4-sigma above average levels. Only a month ago, equity sector risk a...