I've been thinking about this -- could investors' amazing confidence in the Bernanke Federal Reserve turn out to be a fooler and a disastrous hook? Investors are so confident that the Fed will not allow any major decline to take place that they are now actually hoping for a minor decline -- a little decline that will allow them to climb aboard this "new bull market."
The fact is that the huge rise that advanced the Dow up and away from the 2009 lows has now become long in the tooth. Furthermore, when an overbought and overvalued market turns down (as per yesterday's action) no one on earth knows what it might mean. But, as I said, the crowd is convinced that any decline from here would simply create an ideal buy spot to enter the new "bull market."
I believe in the action of stocks and the averages, not in the ... Log in or subscribe to continue reading.
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