Here are some of the indicators of such extreme bullishness and complacency:
- New Record Highs For Dow Jones Transports and Russell 2000 — Well, as you know, the Russell 2000 is the Junk equivalent of US equity, and it's at an all time high.
- VIX Slips to Lowest Level Since 2007 as S&P 500 Rallies — The VIX traded for 12.xx a few days ago, the lowest since the all time high in shares.
- Investors Are Most Optimistic on Stocks in 3 1/2 Years —
International investors are the most bullish on stocks in at least 3 1/2 years, with close to two- thirds planning to raise their holdings of equities during the next six months, according to a Bloomberg survey.
- German Investor Confidence Increases to 2 1/2-Year High —
German investor confidence increased to the highest in 2 1/2 years in January, adding to signs that Europe’s largest economy may gather momentum.
The ZEW Center for European Economic Research in Mannheim said its index of investor and analyst expectations, which aims to predict economic developments six months in advance, jumped to 31.5 from 6.9 in December. That’s the highest since May 2010 and the biggest gain in 11 months. Economists forecast an increase to 12, according to the median of 39 estimates in a Bloomberg News survey.