Crazy Bull Market

The market goes up almost every day. The last time I remember this happening was in 1999 and the Nasdaq I think was up 82% for the year or something crazy like that. Well bull markets can go on for a long time and determining when they actually started is not an exact science. But I think most people will agree that valuations are rich right now.  Valuations can go a lot higher, Sir Isaac Newton lost almost his entire life savings in the South Sea Bubble and later said “I can calculate the movement of stars, but not the madness of men.”  Not sure that pertains to our equities market but definitely the Cryptocurrency market.

I have learned through the years that nobody knows, nobody knows, nobody knows. You have to keep an open mind about the market, anything can happen. It really seams like we should be getting a good correction here and soon. But if you look back to when we came out of the last series of corrections in the 70’s you will see something very interesting.

Lots of very large corrections in the 70’s similar to the ones in 2000-2010.    Plus we had really high inflation during that period.

But now lets zoom out a little and see what happened.

While I am sure that we are going to have some nasty corrections and crashes, possibly even worse than the one in 1987, if you keep a long term view, things may just turn out better than what you expect. Personally I would like to see a nice crash or correction happen right about now so I could buy stocks cheaper. I continually buy week after week, dollar cost averaging in, but always think that I’m buying high.               Maybe I am, maybe I’m not!

 

 

2 thoughts on “Crazy Bull Market”

  1. Yes, nobody knows. Hopefully the correction (if any) is not that brutal. I remember the dot com bubble. It hurt quit a lot of investors. It really took a long time for Nasdaq to come back. Dollar cost averaging is good, in the long run.

    1. Yes, and always very scary especially the closer you are to retirement. That’s why I prefer to look at the dividends I receive vs my account balance. Thanks for the comment!

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