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"Consistency Breeds Complacency"
Stocks have risen so often in the last five years that many investors may take further gains for granted even after the latest slump, according to Wells Frago's Jim Paulsen. As Bloomberg reports, Paulsen's 'US stock market consistency indicator' (which tracks the ratio of monthly gains and losses for the preceding five years), reached 3 for the first time since April 1999 - less than a year before the end of a bull market driven by Internet stocks - a level not seen since the late 1920s. Of course, it's different this time, but as we noted earlier, the consensus bull case is unbreakable and as Paulsen notes "Consistency breeds complacency,” or a sense of comfort among investors that's at odds with potential losses.
As Bloomberg explains,
"Consistency breeds complacency," or a sense of contentment among investors that’s at odds with potential losses, Paulsen wrote.
“While the stock market did decline aggressively earlier this month, its quick and nearly full recovery, if anything, has probably boosted complacency.”
Complacency earlier this year reached levels seen in the 1990s, the 1950s and the 1920s, according to Paulsen, based in Minneapolis. His conclusion was derived from an indicator that combined the consistency gauge with a stock-volatility index, also tied to Shiller’s data.
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potential losses, lulz
One thing is consistent. Wall St. is robbing the populous.
Bull shit money breeds bullshit markets.
Man, those roaring twenties were off the charts.
Relax gentlemen, we have a ways a go....
The thing is, back then they used gold and silver for money instead of fiat-and STILL the market crashed. Makes you wonder.
lol, hilarious, 2 comments for thinking outside of the box.
Got Flappers?
Run away.
Gold and silver dropping like a stone while S&P futures rise. We must be near some sort of record for the longest PM bear market and we all know records are made to be broken.
"Wells frago". ????
How apt!
Consistency breeds complacency.
"A foolish consistency is the hobgoblin of little minds." Emerson.
Nothing is more stimulating as seeing a thundering herd of sheep in their mad dash for the abyss. Milestones