“We have had a great run in equities, emerging market currencies, credit and other risky assets, now people are struggling to justify lofty valuations,” said Alan Ruskin, strategist at RBS Securities. He added: “The ‘green shoots’ argument for the economy was very tentative to start with.”
“The smartest players in the US stock market – the top insiders who run public companies – are not betting their own money on an economic recovery,” said Charles Biderman, chief executive of TrimTabs.
Pessimistic executives cash out of shares – The Financial Times
Sven sent me a link to the graph below, which adequately makes the point:
The rather amusing note that accompanies this:
If graph has a red background, S&P 500 is fully priced by this measure as of the above date.
If graph has a green background, S&P 500 is considered to be undervalued. See Yes, You Can Time the Market for more guidance in interpreting these graphs.
“[F]ully priced” … hehe.
If the regulators hadn’t made shorting mostly illegal / dangerous it’d be a natural time to be betting that this can’t hold and taking short positions in SPY.