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bucolic_frolic

(51,236 posts)
9. Bull markets climb in stages
Tue Mar 27, 2018, 07:31 PM
Mar 2018

the last stage being euphoria. What's notable is that optimism lifts all stocks. I think it was "A Random Walk Down Wall Street", the classic by a Princeton economics professor, who showed how in the late stages of a bull market the indexes keep rising but the average stock and lesser stocks with poor earnings prospects suddenly stall and deteriorate. We could add to that how 5% of the stocks earn 90% of aggregate corporate earnings. The laggards are measured with the advance/decline ratio. When speculation ends everyone wants out of the laggards and they really tumble. IMO laggards have been evident for months, probably since early October. Not that good news doesn't temporarily juice them, but then they go back to laggard territory. Very evident in biotech, especially developmental stage biotechs. But understand I read John Hussman's commentaries, as well as Moosesignal which is in a major cash position right now.

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Stock Market Question [View all] BlueDog22 Feb 2018 OP
It's been in a bubble for some time, elleng Feb 2018 #1
Stock market status:currently bursting. dewsgirl Feb 2018 #2
Personally, I think it's time.... lastlib Feb 2018 #3
Go to yahoo finance and look at the entire Dow chart NRaleighLiberal Feb 2018 #4
You can flip a coin depending on who you talk to... SWBTATTReg Feb 2018 #5
Markets BlueDog22 Feb 2018 #6
Keep in mind that market timing is virtually impossible. PoindexterOglethorpe Feb 2018 #7
I totally agree w/ your excellent points! SWBTATTReg Feb 2018 #8
Bull markets climb in stages bucolic_frolic Mar 2018 #9
I sat out most of the 1990s because I thought the market was overvalued progree Mar 2018 #10
Bingo. PoindexterOglethorpe Apr 2018 #11
Latest Discussions»Culture Forums»Personal Finance and Investing»Stock Market Question»Reply #9