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The effect of passive flows:

[ATTACH=full]189947[/ATTACH][ATTACH=full]189946[/ATTACH]

So essentially chart 1 maps information flow linked to valuations.

Chart 2 states: markets operate on 'efficient market' theory, prices are going up, keep buying.

You would have thought that EMT had died a death decades ago. Clearly not. The result is that the markets are moving higher in ever narrower confines (US markets are outperforming all other global markets) and becoming more and more overvalued because value is not even a thing.

This ties in perfectly with the US NIIP position of FDI.

If (when) this goes into reverse, watch out. That is $16 Trillion in FDI in stocks that can reverse. So when pundits talk about 50%, 70% and 80% retracements, this is how it happens.

What is the catalyst? The trigger?

A too strong USD.

jog on
duc

<blockquote data-quote="ducati916" data-source="post: 1309541" data-attributes="member: 2975">The effect of passive flows:[ATTACH=full]189947[/ATTACH][ATTACH=full]189946[/ATTACH]So essentially chart 1 maps information flow linked to valuations.Chart 2 states: markets operate on &#039;efficient market&#039; theory, prices are going up, keep buying.You would have thought that EMT had died a death decades ago. Clearly not. The result is that the markets are moving higher in ever narrower confines (US markets are outperforming all other global markets) and becoming more and more overvalued because value is not even a thing.This ties in perfectly with the US NIIP position of FDI.If (when) this goes into reverse, watch out. That is $16 Trillion in FDI in stocks that can reverse. So when pundits talk about 50%, 70% and 80% retracements, this is how it happens.What is the catalyst? The trigger?A too strong USD.jog onduc</blockquote>

[QUOTE="ducati916, post: 1309541, member: 2975"] The effect of passive flows: [ATTACH type="full"]189947[/ATTACH][ATTACH type="full"]189946[/ATTACH] So essentially chart 1 maps information flow linked to valuations. Chart 2 states: markets operate on 'efficient market' theory, prices are going up, keep buying. You would have thought that EMT had died a death decades ago. Clearly not. The result is that the markets are moving higher in ever narrower confines (US markets are outperforming all other global markets) and becoming more and more overvalued because value is not even a thing. This ties in perfectly with the US NIIP position of FDI. If (when) this goes into reverse, watch out. That is $16 Trillion in FDI in stocks that can reverse. So when pundits talk about 50%, 70% and 80% retracements, this is how it happens. What is the catalyst? The trigger? A too strong USD. jog on duc [/QUOTE]

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