“Americans Can’t Get Enough Of The Stock Market” – Big Problem?

person throwing confetti

  • This is the kind of headline that makes a contrarian want to hit the exits – When everybody’s in who will be left to buy?

  • The stats and interview commentary that accompany this headline from a prominent financial daily  are pretty scary too given a lack of historical perspective.

  • We provide the prospective to quell the nail-biting.

“Bull Markets … Die in Euphoria”

brown metal pipe on green grass field during daytime

According to investing giant Sir John Templeton euphoria (people loving stocks) is always the end stage of a bull market after a prolonged period of fear, disgust and distrust brought on by the previous bear market. Based on my experience it always seems to work this way. This has been a constant in my writing. As the media and pundits continue to try to call tops to this secular bull, I have argued that we’re not there yet.

“Americans Can’t Get Enough of the Stock Market”

This is the title of the lead headline of this Sunday’s edition of the Wall Street Journal (5/2/2021-you will need a journal subscription to view). This assertion should be a red flag that we are nearing the end of this great secular bull market. Importantly the article is backed up by what appear to be very significant factual information and interviews with enthusiastic market participants. All of this data on a superficial basis would seem to scream “look for the exits.” I would say careful examination of the sentiment-negative issues raised by the article is warranted before contemplating hitting the exits or worrying about moving money away from the market.

Perspective to quell the nail-biting

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Disclaimer: The information presented here represents my own opinions and does not contain recommendations for any particular investment or securities. I may, from time to time, mention certain ...

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