The market continues to surprise me by ignoring overbought signals and peddling itself higher, rewarding distinguished risk-junkies and frustrating the hell out most retail investors, who are stuck on the sidelines. If overheated equities want to continue ignoring the laws of gravity they will need retail participation.
One possible catalyst for getting the average-Joe excited to own stocks: Facebook’s IPO. Despite being incredibly overvalued and having extreme downside risk, Facebook will undoubtedly attract record amounts of retail interest. Degenerates from all over will fight over shares when they start trading. Their irrational exuberance may persist for an extended period of time, perhaps weeks. Inevitably, FBOOK will be an epic failure for buyers and huge opportunity for sellers. With hardly $4B in revenue, I think they would need to grow sales 4 or 5X in order to justify their rumored $100B valuation.
Current Longs: AAPL, BMY, DUK, FCX, TIF, ALXN, DLTR, GOOG, LO, VFC
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