The Calm Before the Storm
The most dangerous thing an investor can do is become complacent during a rising market -- and complacency has ruled the day for a number of months now. The U.S. markets are experiencing low volatility, and stocks have been rising, as many expect they should do. It almost seems as if the "good old days" are upon us again.
The concern I have is that there are too many signals that could perhaps lead to some stormy days ahead. Let me be clear and affirm that I'm not one of those folks who has lost faith in the stock market since 2008. The market itself did nothing to me; rather, the storm that hit land in fall 2008 was caused by the irrational behavior of many people over the course of many years. Those types of irrational behaviors -- ignited by characteristics should as greed, over-confidence and loss aversion -- always exist in the human psyche. That's why we have bull markets, bear markets, expansion and recession....485 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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