MAREKTS ARE AGAIN HIGHLY OVERBOUGHT - REMEMBER SUMMER OF 2015

Everyhting in markets reminds me well of the summer 2015, when it came to China that ultimatly turned markets down.

Right now markets are again extremely overbought and a correction is overdue. Low volume is the biggest risk to the markets so far. But there is also a rotation visible, from FAANG (Facebook, Amazon, Apple, Netflix and Google) to value stocks. FAANG stocks kept the SNP alive and in positive territory within the past two years, while the remaining 495 SNP stocks performed mostly poor. So now it seems the story is over and investors move on to the next investment possibilities, value stocks that were left far behind during the past two years. Furthermore, share buy back programs in FAANG and other tech stocks could come to an end soon since they surely won't invest it all in buy back programs. Share buyback programs  are expected by J.P.Morgan to be more than $830 billion in 2018. In the second quarter the amount reached $4,8 billion/day, which would account to more than $1,1 trillion. But this won't last for ever, since "only" $2,2 trillion USD are hoarded in off-shore places, to avoid taxes. And ever since Trump cut taxes the great repatriation has  started. But what is dearly missed was a political  statement that only the reinvested money in the economy will benefit from tax cuts and surely not an Investment in share buy back programs.