Stock Market -- First Greater Fools Arrive

Jan 12 21:01 2018 Print This Article

The bull party has become a little more crowded with the arrival of the first greater fools. Amongthe pundits in this crowd are those who proclaim that there is large sideline money that has yetto jump in but is now doing so. The story goes that even after eight years of a rising market there isa big crowd who are suddenly afraid they going to miss a huge run-up. When this kind of thinkingbecomes mainstream as it last did over 1997 - 2000, you might as well put the fundamentals downinto your desk drawer. In fairness though, the market is hardly beyond rational argument yet, andthe recent trajectory of the SPX is still too mild to suggest a genuine bubble may be forming. It isstill just a burst of enthusiasm that has brought the market to an overbought that has not been seenin over a generation. But, with money starting to flow into weaker, less experienced hands, volatilitycould start to increase.SPX Weekly

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Capital Markets & Economic Analysis

For investors and traders who desire top quality, conflict free analysis of the capital markets and the economy based on the fundamentals and technicals that drive securities prices. Peter Richardson, CFA and author of Capital Markets & Economic Analysis, was the former chief investment officer and a former NYSE firm partner. He has 40 years experience in the field as analyst, economist, portfolio manager, trader, and CIO.

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