Two conditions keeping investors on edge

In case you haven’t noticed, the S&P 500 has been breaking records since April 2013. Just this week it crossed the psychological 1900 level for a brief moment. But while this is happening, aggressive stocks like small caps are losing a lot of ground to far more conservative large caps. The same is happening to the consumer discretionary sector, which has performed dismally against consumer staples.

There is little evidence – actually, none – in the last 14 years that a market rally like the one we are experiencing can take place without aggressive stocks being at the forefront of performance. To pessimists, this is a clear warning that the market is heading for trouble. Are they right? (Read more)

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