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Although USA Today and other media channels have taken a liking to this phrase to describe the market conditions, there does not appear to be support for the idea. Rather, the author’s research in the attached article reflects something very different, that our economy is just coming off one of the longest sustained period of extreme bullishness.

The author has focused on what investors are actually doing with their money in the market and it appears to confirm his conclusion. According to the article, there has never been a time in history when investors have allocated as much money to stocks relative to cash as they have today. In fact, this article also points out that investors are not just allocating money to stocks, they are also borrowing money to buy even more, and doing so in record amounts.

Outlook on the market

This typically does not bode well for a bull market according to the author, as the analysis appears to show that there is currently a higher level of euphoria among investors than in any recent period including the dotcom bubble (which as we know, ended in the tech wreck).

If your investment advisor has recommended a higher than suitable allocation of stocks, or if your investment advisor recommended or encouraged you to considering borrowing funds (on margin or otherwise) to increase your investment exposure, and you have incurred losses of $100,000.00 or more, please contact the securities arbitration and investment litigation lawyers for a free consultation.