Tuesday, February 21, 2017

State of market euphoria


As we have said many times in the past, the “game” of investing is so very like the children's game of “Musical Chairs.” The music is still playing loudly and well; all are dancing and circling the chairs and it seems, for the moment, that the music shall last forever. 

However, when the music does inevitably stop… and it will… all will suddenly dive for the chairs in the middle of the circle and there shall always be one or two participants who find themselves chair-less. Things then grow ugly. Large profits become smaller and small profits become losses.