It’s been postulated that “Everyone is too Bearish”. That may be true but it won’t necessarily mean what it has in the past for near-term market direction.
You see, everyone was too Bullish due to the simple fact that the market was rising. They thought that the domestic economy was growing and that Europe was saved and both are far from the truth. So all that misplaced Bullishness means we need a balance of way too much Bearishness to kind of “even things out”. That is how, technically, that works, right?
But it is with certainty that I say that the environment has and is undergoing a significant change, and not just because QE is seemingly on hold. There are structural changes underway that have major significance to the investment landscape. Yet, through it all, the major indices are still levitated and seemingly enjoy a “stick save” in the 3pm hour.
But allow me to repeat; if you are an individual investor, you are not forced to be a part of the uncertainty. Everyone “just knows” that “they” will throw enough new money at the problem and get the markets up, even from here.
Sure, there may just be a major investment opportunity sometime in the near future, but buying the market because there is too much bearishness is not a reason to throw your hard earned capital into the fire that is burning now.
Happy Birthday to Senor Fly and enjoy the holiday weekend!