The Stock Market Boom / Bust Cycle: Where Are We At Now?

There appears to be a trend of everyone is getting their “stocks are highly-valued” calls on record in so that when the next drawdown occurs, they’ll have their “I told you so” ready to go. I should probably do that too. Example: Goldman Warns That Market Valuations Are at Their Highest Since 1900.

Here’s the boom/bust cycle chart you may recall from the Housing Bubble era. Instead, this ValueWalk article places us very close to the top point of the cycle for the stock market:

The more valid point of the article is that sooner-or-later, there will be some fear and pain. We should be prepared for another opportunity like 2008/2009 to be “greedy when others are fearful”.

In hot pink, I decided to throw in my own bit of speculation. The other half of the Buffett quote is to be “fearful when others are greedy”. My opinion is that I am not hearing enough greed. Many people are more anxious than euphoric. I think we are actually closer to the “Thrill” point. In terms of the big picture, it’s not that different. We should still be careful. What do you think?

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The Stock Market Boom / Bust Cycle: Where Are We At Now? from My Money Blog.

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