I’ve posted Entry #179 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called The Role of Shame in the Formation of Bull Markets.
Juicy Excerpt: You’re a teenager hanging out with a group of your teenager friends and one of them announces that he has obtained the fake identification needed to obtain alcohol for all of you. You feel uneasy about where things might lead.
That’s the dynamic that applies in the early days of a bull market. Lots of us know that the big price jumps are phony. But speaking up makes us look like killjoys. Everyone wants more money in his or her retirement account. No one else seems to be speaking out. What’s the harm, anyway?