We're back around all-time highs and nothing seemlingly will stop the market's churn higher, with an Alibaba IPO (BABA) the latest event to get investors in a frothy lather.
Brad Lamensdorf of Ranger Equity Bear Fund said a month ago he saw a correction coming. Since then stocks have pushed higher, up nearly 2%. In attached video, Lamensdorf contents nothing has changed to alter his thesis.
“With the sentiment numbers so outrageously high, and with the margin debt so off the charts, we really feel like this is a very risky time for equities.”
“We’re really looking at a lot of the bigger breadth names, the large-caps Amazons (AMZN) and such, they’re starting to break down, we’re starting to see distribution inside of the leadership. So the leadership is starting to break down and so along with the sentiment, along with the margin debt, now you’re starting to see the actual stock price wane and we just feel like a good correction’s coming.”
Lamensdorf cautions if we don’t see a 10-20% correction this fall, the upcoming spring and summer time for the market will be “horrific.”
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