Though I’m not bearish at this point, I am getting less enthralled by the cavalcade of bulls parading around, talking up the market. Steel and solar are red hot. Energy stocks are up. All of a sudden, the world is flush with money and every sector is undervalued.
“There’s $13.5 trillion sitting in cash and alternatives. That’s 26% of the stock market’s value!”.
“The rest of the S&P is decoupling from the financials. Since mid-March the S&P is up 10% vs the bank index being up 5%.”
“We are flush with indicators that the market will continue to go up!”
And my favorite, “the clouds will soon part and the market will do better. Sunny days ahead.”
All this kind of talk is getting me cautious again.
Know this: when Mr. Bear shows up, he’s not going to ask you or Boo-Boo where the pick-a-nick basket is. He’ll rip your heart out, ruthlessly—then shit on your account statement.
Overly bullish optimists have a tendency to get blindsided. They also see things through gay rose colored glasses. Remember: these are the same people that yell, “I won, I won!”, when the money comes out of the ATM—so don’t take them too seriously.
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