Thanks to Bank of America and this chart from ZeroHedge we have our answer. While hedge funds and institutions (supposed smart money) were net sellers, retail mom and pop investors (supposed dumb money) more than picked up the slack since the 2012.
This sort of behavior is typical at market tops. Retail investors are always too late to the party and way too excited to pay exuberant prices for highly speculative stocks. Only to be shocked and swear off the stock market when the stock market proceeds to collapse.
Is it different this time?
It’s never different. The only question is, how much longer will this insanity last and if you will be able to get out on time. Well, most investors never get out on time as they tend to liquidate their equity holdings closer to the bottom. As to when, our mathematical and timing work clearly shows that the bear market of 2014-2017 is just around the corner.
AKA…..right now would be a great time to get out.
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