Stock Market Question

[bucolic_frolic]

9. Bull markets climb in stages

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.