Everyone hop on! We’re all heading in the same direction. Might as well share a ride! Sound familiar? Well this happens in every bull market. Tech stocks did the same thing a decade ago. They were the last good performing sector. And then we know what followed. Without a QE4, or at least other central banks really picking up the QE pace, I don’t see how this can turn around.
Do you see the overcrowding that’s taking place?
Take a look at the stock market and you see a bumpy ride. It goes up for reasons it should go down, it drops for reasons it should go up. Nothing makes any sense, so the default is to just buy. As time goes on, people are being squeezed into fewer and fewer trades, all taking the same bets. Can you guess what people are buying in 2018?
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