Monday, December 18, 2017

Runaway Market

"I'm here for one reason and one reason alone. I'm here to guess what the music might do a week, a month, a year from now. That's it. Nothing more. And standing here tonight, I'm afraid that I - don't - hear - a thing. Just...silence."
--John Tuld (Margin Call)

We're witnessing a runaway market right now. Gapping higher. Up a percent each day. Parabolic shape.

During the run-up before the 2008 credit collapse, former Citigroup (C) CEO Chuck Prince famously remarked that investors have to dance while the music is playing--even if the long term prospects look dicey. This certainly holds true for many fund managers--particularly in the context of year end under-performance anxiety.

This time, however, I fear that, when the music stops this time, the silence will be deafening.

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