Is the Market Topping Out?

Written by Outsider Club
Posted January 8, 2018 at 2:00PM

This week’s top stories…

Shrugging Off Sessions: Marijuana dispensaries in San Francisco started selling recreational pot for the first time, despite Attorney General Jeff Sessions’ recent decision to crack down on the drug. Marijuana operators are calling the move symbolic and expect business to carry on as usual.

Congressional Crossroads: Congress must reach a budget deal by January 19 or else face a shutdown. Republicans and Democrats have been negotiating a potential deal on DACA to pave the way, but talks derailed when the White House weighed in with its own list of demands. Indeed, Trump’s border wall will be a major obstruction.

Biotech Takeover: Celgene has announced plans to buy Impact Biomedicines (notable for its myelofibrosis drug) for $1.1 billion up front and as much as $7 billion down the line.

Crypto-Crash: Ripple crashed 30% on Monday, losing its place as the second-biggest cryptocurrency by market cap. Others followed with Bitcoin down 15% and Ethereum tumbling 14% on the Cboe.

AALL Stock Allocation

Market Froth: Investor stock exposure is at its highest level in decades, according to data from several brokerage firms. The AAII stock allocation index jumped to 72%, its highest level since 2000, according to Dana Lyons of J. Lyons Fund Management. TD Ameritrade’s Investor Movement Index rose to 8.59 in December, its second straight monthly record.

“Retail investors ended 2017 with exposure at all-time highs. Our clients were net buyers during December, resulting in one of the longest buying streaks in the history of the [index],” TD Ameritrade wrote in a press release.

And Charles Schwab says clients’ cash balances have hit their lowest level on record, noting that retail investors “can’t stay away” from stocks.

To your wealth,
Outsider Club Research Staff

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