“We’re in a bull market, and I think it can continue for the next few years,” he said in an interview last week. But what’s striking about his perspective is that while he remains a steadfast market bull, he finds himself increasingly preoccupied by a cloud on the horizon: the growing complacency of his fellow investors.
They keep bidding prices higher and higher, with a speed and consistency that troubles him. In a word, he is worried that we may hurtling into a trajectory that cannot be sustained — what he calls a market “melt-up.”
“The bull market would be more sustainable if investors fretted about all sorts of possible bearish problems,” he said. The economy isn’t all that strong, for example, and it might be much weaker if the Federal Reserve were not holding interest rates artificially low and buying bonds at a relentless pace. The Fed decided on Wednesday to continue its easy monetary policy, but it will have to tighten up eventually, perhaps causing stresses in the markets.
So he is not worried about Euphoria but he is worried that we might have Euphoria at some time in the future which will curtail the Bull market?
Well, I guess we should be pleased that pre-Euphoria is being talked about now…’The Economic Curse of pre-Euphoria’ sounds like a book title.
This man makes no sense whatsoever.