On Schwab's Kleintop Writeup, The market sees nothing to worry about - that might be about to change
Interesting write-up from Jeffery Kleintop at Charles Schwab titled, The market sees nothing to worry about - that might be about to change. He urges caution and sees investors as overly complacent. His reasoning stems from the upcoming political elections in Europe, mainly the French election. He goes on to explain how the markets sold off prior to the U.K. referendum and the U.S. presidential election in 2016. The following graph illustrates his thinking.
This analysis is particularly concerning to me because the S&P 500 has had a maximum intraday drawdown of only 1.9% since the election during which time the market has rallied 10.6%.
The maximum close-to-close drawdown has been only 1.4%.