Markets peak at euphoria. You could say we are seeing some signs of excitement, but are we at true euphoria toward stocks? I don’t think so.
According to data from the ICI, just 3.5% of all the outflows since ’07 have come back to US stock funds the past few months. In other words, we have a long way to go before the retail crowd is back, if they ever truly come back.
Also, a recent CNNMoney poll found that 55% of those polled said it was a bad idea to invest in stocks here. Also 69% said the economy was poor or very poor. That isn’t what you would expect to see at a major peak.
Lastly, these two business cartoons have been making the rounds. Both show almost an outright disgust of the bull market. Again, from a contrarian point of view, that can be very powerful from a longer-term point of view this bull market has some major legs left.
This one was in the New York Times recently.
Not sure where this one came from, but it has been making the rounds.