After a couple of rough months in the markets where volatility rose quite dramatically, it now seems as if the bull trend will remain intact at least for a while longer.
It is interesting to note that despite the geopolitical risks (Russia, Iran), financial risks (Greece) and rapidly deteriorating economics and earnings, that the market has sustained only a 3%ish correction over the last couple of months.
This is, of course, due to the extreme level of complacency in the markets like the “irrational exuberance” witnessed in the late 90’s. Now, like then, the level of overconfidence can last for quite some time and should not be underestimated.
What is important to understand, is “when” the eventual correction comes there will be no safe place to hide. In the coming financial reversion, the only save place will be in “cash.”
DO NOT misunderstand me. I am not suggesting that the world is about to end economically and that all you should own in gold, ammo and a can of “beanie-weenies.”
