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A key metric shows the stock market is at ‘extreme’ levels that are the most stretched in 20 years

“In the near-term, be aware of extreme sentiment and overbought conditions,” Morgan Stanley chief US equity strategist Mike Wilson wrote in a recent client note” writes Joe Ciolli for businessinsider.com. That’s the logic behind a technical indicator called the “relative strength index,” which Morgan Stanley says is the most stretched it’s been in 20 years when it comes to the benchmark S&P 500.Rather, it’s an indicator that will coincide with — rather than cause — a correction once the market has fully topped. Source: businessinsider.com Share This:

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These are the main market risks right now, renowned hedge fund manager says

“High credit, fierce competition and stretched valuations could be potential market destabilizers, a renowned former hedge fund manager said Thursday” writes Silvia Amaro for cnbc.com. The prolonged use of low interest rates increases people’s and businesses’ willingness to borrow more money because their costs are lower.At the same time, the investment climate is more difficult at the moment due to more market competition and stretched valuations, Ruddock said.Central banks embarked on a low interest rate policy in the wake of the 2008 financial crisis and have just recently started reversing…

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Making sense of an extremely expensive stock market

“Business Insider CEO Henry Blodget discusses the stock market’s ascent to yet another set of new highs, and drills down on high valuations” writes Kara Chin for businessinsider.com. Silverstein walks through the Fidelity Chart of the Week, which shows that stock market breadth is the lowest since the election, which could be a signal of weakness.Silverstein responds by noting that being two years early in calling a market top makes you wrong. Source: businessinsider.com Share This:

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Military stretched thin by hurricane relief efforts…

“Diana Holland, gave reporters an update on the rescue and recovery efforts following Hurricane Maria’s battering of Puerto Rico” reports thehill.com. Military personnel have already been working non-stop to respond to various parts of the United States devastated by a series of storms since August.The Pentagon is taking steps to prevent burnout among military personnel working rescue and recovery missions following a string of devastating hurricanes. Source: thehill.com Share This:

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Sell Johnson & Johnson because of its ‘stretched’ valuation: Goldman

“We are fully confident in our strategy to drive growth and to continue to create shareholder value in the near and long-term,” said Ernie Knewitz, spokesman for Johnson & Johnson, in response to a request for comment” writes unknown author for cnbc.com. The firm on Wednesday lowered its rating for the company to sell from neutral, predicting the drugmaker’s earnings growth will lag its peers during the next five years.Rubin increased her price target for the company to $130 from $125, representing 4 percent downside from Tuesday’s close. Source: cnbc.com Share…

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Here’s a sign investors are viewing earnings through rose-tinted glasses

“So far, more than 70% of firms that have reported beat earnings or sales expectations, according to FactSet” writes Anora Mahmudova for marketwatch.com. S&P 500 SPX, -0.11%  companies are on track to report 7.2% earnings and 5% revenue growth for the second quarter.While the main indexes trade near records, investors haven’t been rewarding stocks of companies that beat estimates.While second-quarter earnings season is off to a great start, investors might be overlooking signs of potential trouble ahead, according to Bank of America Merrill Lynch analysts.So, it appears the rest of…

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Police missing terrorist tip-offs because of cuts, says former Met chief

“A former Metropolitan police commissioner has waded into the political row about the impact of austerity by warning that potential terrorist tip-offs are being missed because of cuts in police numbers” writes John Crace for theguardian.com. He said: “Counter-terrorism funding is ringfenced but cuts to the general policing budget [have] impacted on neighbourhood policing teams in many parts of the country including London. Source: theguardian.com Share This:

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Strong buyer demand continues to fuel property sales as prices stall

“More than 12 months on from the Brexit vote, strong buyer demand continues to fuel property sales despite recent reports of a downturn in the market, says new report” writes Kristy Gray for independent.co.uk. Property experts believe that buyers have hit their price ceiling as double-digit house price growth has far outpaced wages over the past five years.Seasonal slowdown ​The data from Rightmove, which tracks asking prices rather than completed sales, also shows a seasonal stall in month-on-month price growth as we enter the summer holiday season.Miles Shipside, Rightmove director and…

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David Petraeus Sends Mixed Messages on War Powers

“Then we stretched it to the son of Al Qaeda or grandson, the Islamic State, with a presence in Somalia, North Africa, and elsewhere” writes Conor Friedersdorf for theatlantic.com. Then we kind of stretched it to be cousin of Al Qaeda in Iraq.In fact, Petraeus has high regard for the Constitution, and even values the particular part of the Constitution that assigns declarations of war to Congress. Source: theatlantic.com Share This:

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