Stocks are up again today, with the major indices again hitting new all-time highs. All those worries from the Brexit crash or last February’s crash or from that crash last summer that bottomed with the $DJIA -1000 in one morning session seem faint and quaint at this point, don’t they?
Do you remember how had it was to be bullish at the bottom of each of those events? We’ve been navigating these markets well and prepared for exactly this action. That’s great and we have a lot to be proud of, especially when you look at the carnage in the hedge fund sector and at all the bears/shorts who have missed and/or lost huge money in this Bubble-Blowing Bull Market. But what about now? Can the markets continue this relentless climb higher? Do stocks need to rest, consolidate and/or pullback? What about crashes, could the market crash just about the time the shorts/hedge funds/bears give up the ghost?
There are no easy answers of course. But we can remain objective and smart about how and when we trade/invest.
Here’s a back and forth from this weekend that I had with a very smart hedge fund manager in which we try to answer these questions.