The market stumbles these days and a rainbow forms in the skies over Wall Street.
Just another chance to buy the dips.
The Dow’s up about 200 this week after last Friday’s health care adventure.
And why not?
For eight years dip buyers have been rewarded royally for their efforts.
Will this time be different?
It was John Templeton – Sir John Templeton – who said bull markets are born on pessimism, grow on skepticism, mature on optimism… and die on euphoria.
Eight years in… has this bull market finally passed the optimism phase… and entered euphoria?
We consider one possible sign today…
Think of the crash of 1929 and what springs to mind?
Shoeblacks… paper slingers… taxi hacks, all giving the hottest stock tips?
Yes, maybe that. But also something else…
Margin buying.
Investors borrowing money to buy stocks. Buy now… pay later. (And pay they would.)
This post was published at Wall Street Examiner on March 31, 2017.
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