blueguyzee | March 4, 2012 |
Like last week, the “dumb money” remains extremely bullish and the “smart money” is bearish. What is also certain is that the bulls remain in control, yet the best gains are clearly behind us. What is uncertain is what happens when the music stops – will you find a chair to sit in or will you need a parachute? The 2010 liquidity love fest ended in the May 5 flash crash, and the 2011 version saw the SP500 drop 18% in 3 weeks. I ask myself everyday: if I am buyer today will I be able to get out of this market safely and without a parachute? Without a pullback to buy in to, I have my doubts.
Read the rest here. Be sure to see the dumb and smart money indicators.
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Sometimes even the smart money is dumb. Like last year with the gross underperformance of some major hedge funds.
The “smart” money can only be defined as the biggest quantity of money which is what is moving the markets. The market action shows that the smart money is not fleeing in terror from equities. Although that could change at any time.