Despite the fact the overall stock market hasn’t gone anywhere in 11 months, the overall bullish sentiment remains near historic highs. If anything, most bulls agree on one thing. Even though the stock market is on a expensive side, we won’t have a top until some sort of a “euphoric blow off top” is set. And since we are not there yet, not by a long shot, there is nothing to worry about.
Case and point….
- COOPERMAN: Four signs that we’re entering a bear market
- Investors are nervous about everything… which is great news for the stock market
“At the market peak in 2000, 66% of individual investors were bullish. Likewise, at the peak in 2007, 55% were bullish. Today, just 25% of individual investors are bullish stocks. Until investors become significantly less nervous about the future for stocks, the longer-term bull market likely remains intact.“
First, I am not sure what planet she is getting that 25% number from. You just have to look at the margin debt, P/E ratios and VIX/VXX to realize the statement above is complete nonsense. I have written about it before Ameritrade CEO Confirms A Bull Trap
In terms of anticipated “blow off top”. I wish investing was this easy. Yet, a simple truth applies. When everyone expects and banks on a certain development, particularly in the stock market, it rarely comes to fruition.
