Jobless claims have been rising. Earnings growth has been decelerating. Revenue growth has been stalling. And mortgage applications dipped to the lowest level in two decades. Is it possible that we have been placing a little too much faith in the ability of central banks to support asset prices?
Granted, there is no reason for gloom or doom in the intermediate-term. Corporate balance sheets are strong. Trailing 12-month P/Es are fairly valued or perhaps slightly overvalued. Most notably, the majority of developed world stock ETFs offer convincing technical uptrends.
Nevertheless, one should at least question the reasons behind the super-sized confidence in certain assets. In some instances, the boldness may very well be warranted. In other cases, it appears that momentum itself has superseded common sense.
You decide. Here are 3 ETFs and my “take” on the sensibility of the price movement.