A quick look around the web reveals that type of impenetrable bullishness
where it is clears skies and happy days as far as the eye can see. Gosh, I
only wish it was so easy.
From this morning's MarketWatch we
have this headline:
And yesterday's edition had my favorite "R" word:
It is all good until it isn't. On January
17, 2010 I wrote the following:
"There are two kinds of bulls: 1) there are those bulls who are intent on
squeezing every last percentage point from this rally and who believe they
can find the exits when the music finally stops; and 2) then there are those
bulls who continue to have high expectations that the current market environment
will yield strong returns. The latter type of bulls are unlikely to realize
strong gains without a significant pullback, and by significant I mean that
the pullback should get investors to think that the market is rolling over
to such a degree that the current cyclical highs will never be revisited. The
former type of bulls are likely overestimating their ability to get to the
exits or identify the top before the next trader. Either way, complacency reigns
as they don't ring a bell at the top."
I am still don't see why this time will be different. This is not a warning,
but an observation.
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