Just like city hall, you can’t fight a market trend. Once the market gets its mind set on a direction, it becomes harder for rational arguments to carry any weight against that direction. As a matter of fact, sometimes the irrational arguments make more sense in the heat of a bull or bear market.
This proves a few things. First, the trend is truly your friend (one of the oldest proverbs on the Street). Second, following the crowd does pay… sometimes… but it’s never good to be a lemming or the last to jump on the market’s bandwagon.
Right now, we’re coming off one of the worst first halves of the year in market history, but to hear some investors and analysts talk, you’d think that this is one of the best long-term buying opportunities around as the next long-term bull market is pulling out of the station.
The “sweet spot” looks something like this
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