The pattern is all-too familiar as a new marginal buyer of an asset class dominates the market until they don't.
Keep dancing if you will, but I continue to sit out the melt-up in stocks and the bubble in other asset classes. When investors/traders are arguably overinfluenced by prices (not fundamentals) that dominate the markets, and are all on a similar side, it has the potential to lead to a treacherous and slippery slope, as it did in 2007-08. Remember, it is some of the same momentum-based quant funds that sold in March 2009 that have been buying over the past few months. I have seen many bubbles in my 30-plus years in the investment business. There is a giant bubble in quant funds, and their outsized influence in buying stocks, bonds and commodities might soon be approaching the height its of popularity. Loading Comments... < Previous 1 2 3 4 5 Next >SHARE:
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Dow Jones S&P 500 NASDAQ 10-Year Note 10,395.70 1,106.48 2,186.65 33.71 Oil * 79.46 DOWN 41.72 DOWN 3.83 DOWN 17.13 UP 0.52 10 Yr 3.37% SPDR Gold 112.18 -0.40% -0.34% -0.78% +1.57% Data delayed 20 minutes More From TheStreet Latest Headlines Top-rated Mutual Funds from TheStreet Ratings Jim Cramer Book Tour Top-rated ETFs from TheStreet Ratings Find returns with the Dividend Calendar Top Rated Stocks from TheStreet Ratings Twitter RSS Facebook YouTube adsonar_placementId=1341369;adsonar_pid=879768;adsonar_ps=-1;adsonar_zw=320;adsonar_zh=280;adsonar_jv='ads.adsonar.com'; Brokerage Partners YAHOO.util.Event.on(window,"load",function(){ setTimeout(function(){ TSCM.util.attachScript('scr_intellitxt','http://thestreet.us.intellitxt.com/intellitxt/front.asp?ipid=10685'); },1200); }); Sponsored Links Get your credit score in 2 easy steps for free. 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