Bear Bull

Will bullish investors soon become their own worst enemy?

FOMO or greed call it what you like

Are investors pushing stocks up too high and too fast? Will this likely lead to a pullback once the number of buyers grinds to a halt!

U.S. stocks have extended gains this year, especially in the fourth quarter and investors expect the party to continue.

Irony

Ironically, this kind of fearless enthusiasm is the stock market’s biggest enemy, in my opinion.

Chain reaction in motion

Rising stock prices tend to make investors too optimistic – the FOMO effect takes over (Fear Of Missing Out). Buyers hold stocks for too long. Fewer buyers are left to bid up prices. Sellers eventually outnumber buyers. Stocks pullback.

FOMO Fear of Missing Out

The chain reaction of excessive sentiment itself is very predictable and almost fool proof. However, the timing and scope is variable and harder to predict, but that doesn’t mean we won’t try.

Gains to be erased?

Over the next few months, all the gains recently accrued are very likely to be erased.

But any correction is unlikely to mark the end of the current bull market.

Timing is everything. So, is now the time to sell.

A pullback is coming!

A correction isn’t far behind either.

You have been warned…

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