Hussman’s latest weekly commentary: I tend to agree with him, although I would say that because the supply of money has indeed grown relative to other assets, the market portfolio holds more cash as a % of its total than market participants might otherwise wish in a normal environment. Additionally while overall credit market debt has gone up, much of this increase has been taken out of the system by the fed. In a normal growth environment, with the current available supply of cash and risky assets, people would under own units of real growth, in other words equities.
Leverage strategy breached suitability obligations: MFDA panel (Hat tip Ken Kivenko from his Feb Fund Observer). In my opinion leverage based sales strategies are de facto legal criminal activities.
Room for improvement from financial literacy stakeholders (another hat tip to Ken Kivenko) – but things are not always what they seem. Financial advisors should be the main source of financial advice rather than the press, the government or the education system. But, it is the interests of that advice and the accountability for that advice that matters most.