Even as markets hit new highs, a recent Black Rock and WSJ survey shows how many out there still have very little exposure to the greatest wealth building machine (over the long-term) ever created.
The point is simple: We are at all-time highs and the mental scars of the last 10-15 years have again taken their bite.
For months now we’ve been told by various media outlets and the “BSHS” – Black Swan Hunter Society – that one of the very few reasons left to “prop up” the stock market is stock buybacks. It’s as if the masses have bought into the idea that stock prices would collapse to zero if there were no buybacks. But would that be at all rational?
Did you know that the flood out of equities in the first six weeks of 2016 nearly equalled that of the 2008/09 panic? The Dow Jones Industrial Index is nearly 10,000 points higher now than it was then, and yet the same fear levels remain.