June 2, 2014
By Peter Bower
The U.S. stock market looks to be at the beginning of a rapid rise.
Professionals refer to this phenomenon as a melt up. Because stocks are moving up rapidly, it causes other professional investors, that may have been more guarded or on the sidelines, to have to buy in at ever higher prices to avoid being left behind and underperforming their peers. (A melt down is just the opposite with scared investors selling just because others are.)
Too much money has remained on the sidelines throughout the past few years as fundamentals continued to improve and stock values improved. Too many investors, including many professionals, have over-reacted to the financial crisis of 2008-09, not believed the improving economy right in front of their eyes, or let their political preferences interfere with opportunity. Many will have to play catch-up and buy at higher and higher prices.
We are well invested and plan to enjoy every bit of this. Stay steady, my friends.
the Lonely Bull
