A few 2010 facts:
Corporate credit default swaps are on the rise.
Junk bonds are being sold big time and issuers have to cancel their programs.
Tips (i.e inflation linked bonds) are puking implying investors are no longer worried about inflation going forward.
2 years yields in Germany have never been so low (under 1 pct).
Yield curves are steepening. All these are risk adverse strategies.
States deficits are huge.
Western economies are slowing down.
China is trying to slow its bubbling economy (might even revalue the yuan).
The morgage financing gap for 2010/2013 is huge implying a further dip in house prices (especially in the UK and Spain).
Forex prices trends (highly linked to stocks) are struggling, i.e breaking 2009 trend.
US stocks are outperforming big time Europe (especially nasdaq).
Central Banks are cutting their emergency programs.
McKinsey and other think tanks are warning of slower growth.
Rating agencies are worried.
There is plenty of cash around, true, but this is an indication of corporates and others being worried and competition for funds going forward will be fierce.
Day/day volatility has increased significantly.
Technically all major stock indices have completed a monthly reversal pattern in January 2010 (as well as weekly and daily on the highs) according to TD analysis.
Only good news here ?!! Something is very wrong again. The US stock market (after a 5 pct rally from the lows in Nasdaq for ex.) is way overvalued and should start to go down big big time or everything else has to correct itself. Choose your camp but don’t come back crying if you made the wrong choice.