SOME THINGS NEVER CHANGE, and some do. The trick is in figuring out which is which and when, if at all, they do. The U.S. stock market has to go down in the record books as one of the most unchanging “things” ever – at least over the last few years. I was looking over our daily chart books that go back to 1885, and didn’t see another example of the market rising for 3 full years without a correction of greater than 10%. As this chart of the Dow Industrials’ ETF additionally shows, the market hasn’t even (other than very temporarily) violated its 50-week moving average in the last 36 months. So this market never changes, although surely by clarifying the definition of “never," even that too will change at some point.
We, or at least I, have made the judgment that this unprecedentedly bullish market is simply too risky ... Log in or subscribe to continue reading.