Have We Gone Counter-Contrarian?

It seems that wherever I look, the media is saying the same thing that perma-bears have been proclaiming since the recession of 2003: Gold up, Stocks down. Only the reality doesn’t seem to justify the perception. Is it possible that Wall Street has gone down a lane of desperation while quietly humming “Do as I say, not as I do”?

I think more accurately the trend, the general trend that is, is changing. This is no quarterly change mind you, but a decade change. It seems that sentiment is finally running on the bear’s side of the fence.

Remember back a few years. How long did Wall Street cheer on rising stock prices and applauding the booming earnings of technology start-ups before the whole charade came crashing down? The same should occur, only this time in reverse. Denial, Migration, Capitulation. We are somewhere amidst the Migration stage.

Investors just aren’t quite sure yet. “If the stock market should be falling, as earnings certainly are, why are prices rising??”. And there you have your contrarian idealist. They should be falling, yet they aren’t and it would bug the heck out of anyone who wants to sell, but simply can’t be to sure.

We know better. And we know that when bricks are falling and the foundation is flawed, it pays to stay clear out of the way.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: