The legendary Howard Marks is increasingly skeptical of the rally in equities. His latest memo to clients is a must read:
“One thing is indisputable: the rally in financial markets worldwide has outpaced the fundamentals. At the beginning of 2009, most onlookers expected a generally weak economy and were concerned that the behavior of consumers and banks would remain conservative. They were 100% right, and fundamentals are still tenuous. And yet, the rally has exceeded all expectations of which I’m aware.”
Read the piece in its entirety here.