How do you know that stock prices are too high? When people start saying things like: “Stock prices are at levels at which markets historically have crashed. But this time it is different. ” Or: “This invention is so innovative, it has completely transformed the economy. Economic growth will be endless.” Or: (At the camping) “Have you seen the rise in stock prices? You are a fool if you would not invest your savings in stocks right now.” Or:
US stocks closed higher on Monday, with the S&P 500 ending at a record and the Dow extending its streak of such closing highs to nine. The Dow rose 0.12%, reaching a new closing record of 22,118.42. The S&P 500 climbed 0.16% and the NASDAQ added 0.51%. As a result, volatility eased. The VIX is below 10 points again. The fear index closed exactly 1% lower at 9.93%. XIV ETNs gained 1.12%. UVXY ETFs lost more than 2.5%.
All of our models are holding XIV ETNs and made gains for the day. Danny Daredevil‘s RSS climbed to 195%. Adventurous Anny saw her RSS rise to almost 34%. The return of Solid Suzy and Lazy Larry since their start at 6 March reached 43%.
None of our models gave a trading signal at the end of yesterday’s session.
RSS = Return Since Start | YTD = Year-To-Date | QTD = Quarter-To-Date | AAR = Average Annual Return
René visited the north pier of IJmuiden. As he took this picture of a boat, three gnomes suddenly popped up from nowhere. (This also happened to Tim. See his blog post of exactly one year ago.) Gnomes in the Netherlands are notorious for their disturbing behavior on 8 August. Whenever you visit the Netherlands on that date, check your selfies!