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Bull Markets Never Die Of Excessive Skepticism And Doubt

Published 10/24/2017, 12:29 AM
Updated 07/09/2023, 06:31 AM
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I and likely many regular readers tire of the constant reminder that bull markets NEVER die of excessive skepticism and doubt. Bull markets, born on pessimism, feast on skepticism and doubt until they get fat, complacent, and excessive optimistic about the future. The latter, excessive optimism, kills bull markets.

Selling extreme optimism without knowing exactly how to define it is not only dangerous but also foolish (see Sentiment Review). Millions investors, nevertheless, will do just that and pat themselves on the back for being smart while my sentiment model screams don't do it.

Headline: The S&P just broke a remarkable streak that could signal the late innings for this bull market

The S&P 500 just posted a historic winning streak, but some market participants are predicting that the long-running bull market could be on its last legs.


According to Ryan Detrick, senior market strategist at LPL Financial, the S&P 500 has now gone 242 trading sessions without a 3 percent pullback — its longest streak ever and topping the previous record of 241 days set in 1995. Since the most recent streak began, the S&P has posted more than 20 percent returns over that period of time.

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