It’s a harsh reality of human behavior and capital markets: when assets are at deep discount and value and yields the best, would be ‘buy and holders’ who bought high have lost their shirt and are running for the exits. But when assets are obscenely valued with pitiful yields and years of zero and negative returns baked in, optimism is at cycle highs and those who ran at the lows, are finally rushing to put in every last bit of cash and margin debt they can borrow.
For those retired, a recent Gallup Poll finds stock market optimism at the highest since the market peak in 2000.
(Click on image to enlarge)
Just as US stock valuations have officially eclipsed their 2000 peak and are now priced for 12 years of negative returns from here.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.