June 2007 Redux

I have been hearing a lot of things recently that remind me of June 2007. Bearish sentiment is perhaps not what the AAII Bull/Bear survey indicates (not too surprising given is a better gauge of retail positioning given the focus on newsletters).

Specifically, over the past few days:

"The Fed is long stocks, why fight them?"
"There is liquidity everywhere"
"Liquidity will search for yield"
"Bad data is good because it means rates are lower for longer"
"There is a structural bid from Real Money"
"There is huge amounts of cash on the sidelines"
"Eastern Europe can still rally if there is a sell-off in risk" (yes someone even tried to
convince me of this!)
"Risk has to rally at least into Q1"
"Rates on hold mean you need to move out of cash into risky assets"
"There's nothing to stop SPX hitting 1200 by year-end"
"Equity markets will climb a 'Wall of Worry'"

Compare with some examples from June 2007:

"The Fed has got your back"
"There is liquidity everywhere"
"There is a thirst for yield"
"There is a structural bid from Structured Credit"
"Bad data is good because it means that the Fed will cut rates"
"Carry & EM won't be affected by a US slowdown, they can continue to rally"
"EM can decouple from the US"
"Subprime is 'contained' "
"Equity markets will climb a 'Wall of Worry' towards 1600"