Goldman put out a breathless piece this morning about how cheap equities are relative to treasuries, calling this a rare buying opportunity. Where were they 6 months ago before stocks rose 30%? I would note that treasury yields were lower at that time as well. One thing that never changes in the market is that people get bullish higher and bearish lower.
These type of calls after a long rally are cautionary as they tell you that everybody is drinking the Kool-Aid. This is yet another sign that sentiment is overheated and that caution is warranted. I continue to expect more corrective action this week.