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Financial Times/Mohammed El-Erian/8-31-2020
“[D]espite the vocal concerns over valuations having split away from underlying corporate and economic fundamentals, few fund managers have been willing to challenge the market by placing outright shorts. But the outlook is much more nuanced in the derivatives market that sophisticated investors use to express more refined views. Retail investors should take note.”
USAGOLD note: We post these warnings from time to time, but few pay attention. The psychology remains dance until you can dance no more even if you know the market is seriously overvalued and sophisticated professional investors are getting out.