In the past, when I wrote disparagingly about Wall Street’s eternally bullish drumbeat, I never envisioned banging away on the kettle drums myself at some point. And yet, with the latest updates (see below) for some key stock-market bellwethers, I have aligned Rick’s Picks with some of the most shrill and obnoxious hubris coming from the likes of CNBC, Bloomberg and the Wall Street Journal. This makes me uncomfortable, but the charts are saying what they are saying, and I’ve learned to trust them before my instincts. Regardless, I’ve still got one foot on the fire escape and so should you. The decibel level of cocksure bulls is at an extreme and investors are all-in, seemingly certain that a global economic boom lies just ahead. By my lights, even if this proves to be so, stocks are very richly priced .
Ignore the Hubris and Party On!
- November 26, 2017, 9:59 pm
Well Rick, everyday that passes finds fewer Old Timers that grew up in a world where………..
“November 1972 – The Dow breaks 1000 for the first time. Shortly after the re-election of Richard Nixon, the blue-chip index closes at 1003.16. Within months, the worst bear market in half a century will begin, with the Dow losing 40% of its value at one point.”
And this………….
” For 30 years, like clockwork, CUSIP 912810DS4, the identifier for $7.15 billion in bonds issued by the U.S. government in August 1985, has paid out 10.625 percent in annual interest payments.”
Is it any wonder that we Old Timers just can’t make the jump to accept present market conditions?
See, if we all just max out our credit cards and buy Bitcoin, we can all be Millionaires and pay off the National Debt to boot!
LOL!