2 out of 3 investors think we’re in a bubble!

JC Parets
January 23, 2021

The latest E-Trade StreetWise survey, which is put out quarterly, revealed most investors (66%) believe the market is in bubble territory, and another 25% think it’s approaching one.

Check my math, but that's over 90% of investors thinking we're in or near a bubble.

A bubble!

Everything needs to be a bubble.

You see why we can't have nice things?

I mean, what ever happened to a series of higher lows and higher highs defining an uptrend?

Too simple?

Not intellectual enough for you?

Fine. Let's get into facts.

The Dow Jones Industrial Avg and Dow Jones Transportation Avg did nothing for almost 3 years, and just broke out in the 4th quarter last year. Is this a bubble? Or just the beginning of a new uptrend?

What about Europe? It's gone no where for 20 years. Literally no progress in European Stocks for decades.

Is this a bubble? Or are we about to start a new uptrend?

What about Emerging Market stocks? They've done nothing for over 13 years. Is this a bubble? Or just the beginning of a new uptrend?

Want to keep playing this game?

I can go all day, but I think you already know that.

How about shorter-term? Take a look at the world's largest company. It did nothing since the summer, consolidated, and now just broke out to new all-time highs.

You want a correction? What do you call that?

Is this a bubble? Or just the beginning of a new uptrend?

From a sentiment perspective, the fact that over 90% of investors think that we're either in a bubble or that we're approaching one, probably means it's not, and we're not.

New all-time highs and a population of investors who don't believe it....

Can you think of a more bullish cocktail?

Cheers!

JC

 

 

Source:

E-Trade Streetwise Survey Jan 22, 2021

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