The DOW rally is currently sucking in the very same people that...

The DOW rally is currently sucking in the very same people that havn't been in the market for years , after being burnt by the GFC. They are setting themselves up for another shellacking imo !! Some people just never learn (especially the US finanicial regulators.... what regulators??)

Got to love the mentallity of the market though. No one wanted to buy stocks at rock bottom prices in 08/09 , now people are clamouring to buy into over priced stocks with bloated PE ratios and into an economy showing a total lack of real growth and a stagnating political will All the while , global unemployment continues to fall , underpinning the fagile state of things....

QE fueled equities rallies will fade and gold will resurface once again as the goto asset class. Nothing else is certain imo.

So do you want to buy into the over-bought sectors like banks and financials (which are at or near the top) ? or buy into the oversold gold sector (which are at or near the bottom) ?

Interestingly, I was at a dinner last week and the whole table was talking about which bank shares to get into. More lambs to the slaughter and right on cue, eating up all the media BS and hype.... Worth noting, these are the same guys that bought at the top of the property market !! great contrarian indicators!