We’ve been in a bull market for weeks now, and a lot of analysts are staying optimistic about the upward trend. Despite certain stocks like Apple and Amazon fluctuating, most companies are reporting higher earnings than ever. But is there such a thing as “too much optimism?” Reporters think so, and they’re advising you to sell now, because it can’t get much better than where we are now.
So how bad are we expecting the market to get? Well, according to a recent survey, we could be looking at the worst economic outlook for the future since December 2011, 7 years ago. This high valuation of stocks is coming off the wrong way in consumer’s eyes. The average investor, with little to no knowledge, sees the market as “stocks’ are cheap, valuation is high, I’m just going to buy without any regard for consequences.”
This mentality does not account for the destined crash that is going to come. There can be no bull market without a bear market pre and succeeding the current state of Wall Street. WiseDime is going to stick with the cautious optimism and say “take your wins now, for they could turn into losses very soon.”
