DOW closing in on 20.4k
You guys believe me yet?
Referring the markets to historical norms is not now fruitful, has not been fruitful for some time, and will not be fruitful for some time to come. There has been a dislocation, a discontinuity.
The investor profile is different, and the trading profile is sufficiently different that historic norms no longer apply.
I got back in, broad-spectrum, when it bounced just above 20k again, after the brief dip under. I was looking for either above 20k sustained, or a while above, then a dip below, then a return above, which we got. I have no qualms about getting out, and only being in short-term.
Meanwhile my metals are doing great, I might even consider exiting that position temporarily. Some of that stuff is up insanely on the year, more than I thought it would be, like junior miners.
Yes Igy you can pick some scraps, but it's a new era. Huge price gains, tiny volume. That reinforces what I have been saying about the wealth of investors and the lack of need to sell. Also the fudge-factor regarding public accounts...upping market returns is the ONLY way to better the situation without serious trouble, and price rise is therefore absolutely inevitable...and more price rise than we have already seen, more enough to make the public accounts look solvent. And that's a lot.
The fix is clearly in, and so am I. A 10-15% "correction" will be irrelevant. The only problem is how much fickle Chinese money is in the markets, those guys tend to panic more quickly. If they can just relax, there will be no problem.