By Vern Gowdie – The Gowdie Letter (Australia) –
Bullish sentiment — euphoria — among US investors hit a 30-year high. The last time investors were this upbeat was in 1987.
Why does that year ring a bell?
Oh that’s right, we had Black Monday on 19 October 1987…the day the Dow Jones plummeted 23% in value. I remember it all too well.
But let’s not allow history to spoil a great marketing opportunity for the industry.
There are a few issues that could cause a minor disruption to markets, but we ‘see sharemarkets trending higher over the next 12 months.’
Over the years, I’ve lost count of how many times that ‘outlook’ has been trotted out by the industry.
If institutional economists designed a bicycle it would have square wheels; they obviously don’t believe in the rotating effect of cycles.
‘Boom and bust’; ‘what goes up must come down’; ‘bull and bear’; ‘market cycles’; ‘night and day’; ‘rain and shine’; ‘yin and yang’ — these references to balance don’t exist in their utopian world of up, up, up, up and up…and for good measure, up again.