Bull markets are born in pessimism, grow in skepticism, mature in optimism, and die in euphoria
The Bubble is in Cash, Not Stocks…or better the only bubble is people’s uncertainty of the future and their desire to hold large sums of cash. These high cash levels equate to a huge pool of marginal buyers, rather than sellers, for stocks and other “real” assets.
Contrary to popular belief the common trait of previous market tops, wasn’t that they were expensive, rather it was that too many people owned stocks.
Consumers (who are ultimately the buyers of stocks) have the highest cash levels in a generation, combined with the liquidity of stocks that is probably the lowest in a generation and you have the recipe for the best is yet to come in the stock market. Yes, the rally in stocks is likely to continue for many months and the performance may well rival what we have seen over the last 5 years!