What Is Happening Right Now Is Madness…
KingWorldNews.com
February 22, 2017
With the Dow and Nasdaq hitting a series of new all-time highs recently, what is happening right now is madness.
Templeton’s Warning About The “Euphoria” Stage
Here is what Peter Boockvar wrote today as the world awaits the next round of monetary madness: “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” You likely have heard that quote before from John Templeton, an investing hero of mine. My prior boss, another great investor, often cited it and I felt that it was an important guide in gauging what stage of a bull market we are in. Sentiment is an unusual thing as its driven by emotion that separates itself many times from underlying reality both up and down. Considering the relentless, almost parabolic rally since the election as we approach the 8th year of this bull market that is nearing the longest ever, how can we not ask ourselves whether we are in the “euphoria” stage of this bull run…
Some say we need the participation of the retail investor in order to reach that level. I disagree as after two 50%+ bear markets in 15 years, that is not going to happen. Many have not and will not come back. Thus, we have only other ‘emotion’ indicators to rely on and even those are really only helpful in retrospect.
“Best Move: Just Buy Everything”
It was on January 12th, 2016 when an analyst at RBS said “Sell everything except high quality bonds…We think investors should be afraid.” He expected a “fairly cataclysmic year ahead.” The market bottomed a month later and the S&P 500 is up 30% since. I saw on TV last night with a headline titled “Best Move: Just Buy Everything?” Last week a writer at Marketwatch wrote “Here’s why you shouldn’t buy a stock ever again” in a fawn over passive, index investing.
The Rest…HERE
