04-03-2014, 11:41 PM
It may seem counterintuitive to classify the latest market rally as painful but for everyone sitting on the sidelines in cash it must have hurt to watch the tape tick higher. This “pain trade” goes back to legendary trader Jesse Livermore who posited that markets will move in whatever direction hurts the largest amount of people.
The Pain Trade: Experts watch rally from the sidelines | Breakout - Yahoo Finance
After a limp start for equity markets in 2014, investment bank Goldman Sachs has revealed it is bullish for the second quarter, predicting global growth to pick up and shares to follow suit.
Goldman Sachs: It's showtime for global growth
Asset bubbles are notoriously difficult to identify as they are happening. Often times, they only become clear in hindsight. Having said that, Goldman Sachs' David Kostin offers an interesting stock market chart in his team's new US Quarterly Chartbook. It shows the sector composition of the S&P 500 by market cap since 1974. As you can see, sector bubbles manifest when they suddenly explode as a percentage of the S&P 500.