If you don't believe me, here is the evidence.
The stock market has returned more than 164% since the 2007 peak, which is more than 3.8x the growth in corporate sales, and 7.5x more than GDP.
But, for the 10% of the population that owns 90% of the stock market, the sentiment is now getting extreme.
Sentiment Is Getting A Bit Extreme
While the video discusses some of the extremes currently developing in the market, none better shows this than our investor sentiment gauge. As explained previously, this gauge compiles several measures of investor "positioning" in the markets in terms of actual equity exposure. As shown, we are at levels that have historically had poor outcomes.
Of course, seeing that, you shouldn't be surprised to see that retail investor confidence (dumb money) is near its highest levels on record.
However, with "euphoria" now at mania levels, the only question is just how disappointed they will be?
As noted above, it is quite clear everyone is "now in the pool." Such raises the question of:
"Who is left to buy?"
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