Loading ...Presenting: “Why this stock market will never go down” which contains such stunning pearls of financial insight as the following:
Everyone believes the U.S. stock market has reached a permanently high plateau. Everyone, that is, but the bears.
Last week’s Investors Intelligence survey showed bearish sentiment at its lowest since 1987 (13.3%). In fact, short-sellers have nearly disappeared along with the few remaining bears. In addition, the VIX is at historic lows (near 12), which reflects investor complacency.
Put another way, almost no one believes this market will go down.As we said: pure trolling comedy. As to why worry… well “long-term” trader memories may be 6 years or less, but the last time everyone put their faith in the Fed, the market plunged some 60%.
Wait, “permanently high plateau“? When was the last time we heard that line. Oh wait, nevermind.
That said, the author does point out the clear inherent falacy in his premise, namely that there no longer is any retail participation in a market which everyone realizes is too rigged, too manipulated and too broken to hope to even break even