Dow surged past 26,000 overnight and Hang Seng closed at a record 32,122 today. Is the BIG Bull coming?
For this write-up, I will focus on the U.S. market
Based on Bloomberg, Grantham, the chief investment strategist for GMO wrote on 3 Jan 2018 that the U.S. stock market may be approaching a melt up or blow off phase. A melt up phase refers to a sharp increase in the share prices driven by sentiment or the fear of losing out.
Are we in the blow off phase? To be frank, I am not sure. However, here are some startling statistics to ponder.
a) Dow has surged 5.7%, or close to 1,400 points since the start of the year;
b) Dow took 13 calendar days to rise more than 1,000 points and closed above 26,000 on a closing basis on 17 Jan 2018. Based …