Over the weekend, I read commentary at WSJ.com about the illogicality of investor fear. The writer quoted James Paulsen, chief investment officer at Wells Capital Management, as saying, “If 2000 was the peak of irrational exuberance… today has to be the era of irrational pessimism.” It may or may not be rational to pay for the S&P 500 [...] [...more]
Banks aren’t lending, yet the SPDR Select Financials (XLF) keeps getting investor dollars. Consumers are exceptionally cautious in their consumption, yet SPDR Retail (XRT) continues unfettered. It’s pure momentum for the time being, and people are snapping up the investments that have been climbing the fastest. They’re exceptionally keen on purchasing fundamentally weak areas in near-term pullbacks. If you’d rather look for opportunity rather than ride [...] [...more]
