Wednesday, December 10th, 2008
Too much bullishness?
I recently wrote that long-term investors (20 to 30 year investment horizon) should be putting money into stocks. I also spoke about the importance of maintaining an optimistic stance.
Going into 2009, I’m still seeing surprising levels of optimism in the media. Here are just a few examples:
What does this mean? Possibly that this bullishness is already discounted in, which means a new bull market is unlikely soon.
As usual, I have no idea where the market is heading, but two scenarios are valid: further steep falls; or a long, grinding bottoming process that wears everyone out and makes us throw our hands up in disgust at stocks. That’s what happened in the shocking market periods after 1929 and the 1973-74 bear market.
Word Count: 131. This entry was posted on Wednesday, December 10th, 2008 at 4:02 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
