Long-term charts out of Ned Davis Research suggest stocks are overpriced and households are fully invested. These charts undermine the scarce plausibility of a continuation of the bull market. That's not to say these charts give ground to a recession or a major market sell-off. But reasons to keep buying are dwindling as we hit the boundaries of long-term trends (since 1928), we see cash levels are lower than normal, we're surrounded by the multitudes of uncertainty coming into an election year, and all the while predictions of a coming recession get louder every day. The take home message is not to retreat to the G-fund or cash for good, but to pay attention.
Think individual investors are set to power stocks to new highs? Think again, says Ned Davis