Off the Cuff: Down From Here?

In this week's Off the Cuff podcast, Chris and Mish discuss:

• Down From Here?
  • Odds are the market top is behind us
• Lack of Fear
  • Despite the evidence, too much investor optimism remains
• Why the Fed Cares More About Growth Than Consumers
  • Because the banks can't function without it
• Europe on the Verge
  • Expect the big players to fail this time

Chris and Mish review the past few weeks of market gyrations and agree that price risk is overwhelmingly weighted to the downside going forward.

Of course, both calculate that stocks are at least 40% overvalued. Are we witnessing the start of a decline that large?

Too early to tell, but you can be sure we'll be watching closely and updating our readers on their evolving analysis over the next several weeks here in Off the Cuff.

Mish feels that, despite the growing evidence that the ever-upwards party march of the past two years is over, there's not nearly enough anxiety among investors yet. With such lack of fear, the risk of a big sell-off is high. Because when sentiment shifts, it can shift fast. When everyone on the same side of the boat tries to change sides at once, pandemonium often ensues.

Meanwhile, the macro picture globally continues to deteriorate.