What we had since essentially early April was the Euro strength and since then the Euro has been weakening and then until July we had Yen strength and now its weakening. And bond prices have continued to go up. Its interesting that at the present time, Spanish government 10 year bonds yield less than US treasury. Spanish bond yield 2.25 percent and US 10 year note yields 2.4 percent. I believe all the markets are grossly mis-priced because some people say intervention, I say central banks have manipulated interest rates to artificially low levels and so you have this complacency in the market place.
We are more than 5 years in the bull market. Can the market go up another 10 percent or so, yes its possible. Since August 7th, up to today the S&P is up roughly 100 points, at this rate(in one month), the S&P in the next 12 months will be up 1200 points. I dont think its very likely. And if there is a strong blow up phase, it will be followed by an equal sharp downturn.
via Bloomberg interview
