Monday, July 27, 2015

Markets could be near a Top not a bottom

It is very difficult to put together a bullish case for stock prices.
I think the best thing to do is to quietly go to the sidelines and allow the circumstances in Europe and ... China wend their way through and clarify themselves. We're probably not closer to a bottom. I think we're closer to the top.

Two.... three weeks ago I was quite bullish on stocks. [But] now I see a lot of reasons to be at best neutral on stocks here in the United States and even slightly bearish of them.

The overriding fundamental is China. I tell you to pay a great good deal of attention to what's going on in China. The government [there] is doing everything it can to try to pop up stock prices, and thus far has been utterly unsuccessful. Usually government intervention ends badly, and this does not look pretty.