John Frattasi |
Bullishness is hitting all-time highs, and even some of the folks who were very skeptical about the economy, are turning positive.
Meanwhile, the S&P just broke 1500. As Josh Brown at The Reformed Broker notes, the NYT sent out a rare email newsblast to mark the occasion, that stocks had broken through this barrier, meaning the word is getting out. Stocks are on fire.
Of course, to many folks, their first idea is going to be: SELL SIGNAL.
But this crass contrarianism is silly. The idea that we've hit a top just because people are getting bullish, and aware of the
Some tweets from Josh on the subject this morning are key.
I don't get the obsession with calling the top just because stocks are becoming mainstream again.
— DowntownJosh Brown (@ReformedBroker) January 26, 2013
A lot of you guys in your 20's don't understand that it's perfectly normal for Mom & Pop to be interested in stocks. Not an automatic sell.
— Downtown Josh Brown (@ReformedBroker) January 26, 2013
In the 1960's, housewives knew the Nifty Fifty stocks by name. In the 80's and 90's some of the bestselling books were about investing.
— Downtown Josh Brown (@ReformedBroker) January 26, 2013
The shoeshine boy indicator, magazine cover indicator are not nearly as clever as you think they are. We all understand the concept.
— Downtown Josh Brown (@ReformedBroker) January 26, 2013
Ignore the surveys, I don't think you understand just how underinvested people are. Pension funds in particular have made a huge mistake.
— Downtown Josh Brown (@ReformedBroker) January 26, 2013
None of this is to say that stocks can't go down. But if your whole reasoning is that the masses are getting bullish on something, then that's awfully simplistic and flawed.
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