CNBC today noted that the last time people had this little concern about a market correction, as noted by the weekly Investors Intelligence report, was at the time of the market crash of 1987. They note that bearishness is at 13.3% of investors. Contrarians are licking their lips, with their fingers on the SELL button. Bullishness can be contributed to a continued belief that one should not “fight the Fed”, which has continued to be easing in their actions, fueling low, low interest rates and easy money.
September is in our midst now though, historically the worst month for stocks. But that hasn’t rung true in the last ten years, with the market down only twice during that time in September. So what could potentially send us down from here?
1) According to Zach’s research, the average bull market, since 1921, has lasted 62 months. We are now in about the 67th month of this current one.
2) China, the darling of the early bull market run, isn’t looking so hot anymore. Deflation still rules in Japan.
3) What happened to Europe? Not much talk about that anymore. However, they are still struggling with debt and a sickly economy.
4) US top-line growth isn’t too hot either.