Introduction
With the broader making new highs every other day, thoughts of selling out will surface and those who have not invested will want to stay away.
This is because whenever stocks hit an all time high, they climb a wall of worry. At every juncture there are concerns that a crash is waiting to happen. There will be discussions of inflationary woes, market is overheating, higher interest rate, a recession is round the corner et cetera.
We see articles by Charlie Munger where he warns of gambling mentality in the markets and the famous Michael Burry said “The market is dancing on a knife’s edge” because investors are taking on unsupported risk. Ray Dalio has called out a bubble territory.
While there are merits to their statements with an increase in leverage where investors are trading on margins and markets at high valuations all these are noises in the market. No one can predict anything in the short run....