Traders Joining Retail Investors and Ignoring Fundamentals, Buy at What Might Be the End of a Bubble
As the stock market continues its magical melt-up, "Realist" traders are starting to capitulate to the bull run, regardless of how they see the underlying fundamentals of the market.
The above chart illustrates the s&p 500's price-to-sales ratio closing in on its highest level ever and shows how overvalued equities really are. The last time the ratio got to this point the US markets experienced the DotCom bubble crash of 2000.
Personally, I missed out on the current epic bull run, due to lack of faith in any of the numbers Wall Street produces. It appears traders and money managers who follow fundamentals rather than trends are throwing the towel one after another and piling on to the trend. They need to justify their fees and commissions by delivering a healthy return to their clients and overseers, regardless of what they think, they're joining the parade.
"The world is full of bubbles," warns former fund manager Richard Breslow but that shouldn't stop you from buying 'em. In the latest capitulation of a former realist, Breslow's confessional clarifies what many, many market participants clearly believe (and what Goldman called "unusually bullish"), "The reality is, you don’t have to like equities to buy them. And that will remain true until it isn’t. For now, beauty is in the eyes of the holder."
Breslow has joined the bandwagon of this buy, buy, buy environment, as have so many other professionals.
Heck, even my father-in-law asked me to invest some of his money in this market. I turned down his request. I couldn't in conscience justify the value of the market. He, like so many other retail investors, see the upward trend at the last minute and buy at the top. He wasn't interested when I pointed out some opportunities in cryptos.
I'm not giving advice, but let the markets correct and buy the dips, otherwise, park your investments in bitcoin. Just my two cents.
-Sheeps-
http://www.zerohedge.com/news/2017-10-12/one-more-trader-capitulates-its-bubble-buy-it