Sell now, ask questions later.
Within a week, two industrial powerhouses have let investors down with their profits. Investors have to start paying attention. 3M (MMM - Get Report) warned last week on profits amid higher commodities costs. FedEx (FDX - Get Report) missed earnings forecasts on Monday by a whopping 34 cents thanks to investments in higher worker wages.
Fund Managers Say
A net 24% of investors surveyed by BofA expect global growth to slow in the next year, up from net 7% in August. It marked the worst outlook on the global economy since December 2011.
Over on Real Money, TheStreet's Jim Cramer tackled why nobody cares about high valuations on stocks. "What's so frustrating, what's so maddening about this market right now, though, is that valuation makes no difference whatsoever in anyone's thinking. Anyone. You get these downgrades by analysts on valuation and you just roll your eyes because, you see -- and this is really the rub -- the buyers do not care. They aren't going to stop here. They get new money in, they look at their stocks, they think their stocks are cheap and they buy more of them. It's an insanely non-rigorous virtuous circle. You want to boil down the current investment thesis? It goes like this: I buy them because they go higher and they go higher because I buy them. Could there be a more stupid or a more profitable investment strategy at this moment -- and perhaps until the end of the year? I don't know. I can't think of one," Cramer said.
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