Investor sentiment

Investor sentiment at the moment is at all time extremes, now this does not mean the market is going to crash, and it does not mean the market CANT go higher from here, in fact we are still in a bull market but this is a chart that is doing the rounds again amongst blogs and forums.

The US government and their massive printing off of money and investor sentiment at extremes mean that one day, things are going to end in tragedy. Not tomorrow, not next week but eventually things will not be able to keep traveling along they way they are right now.

EXAMPLE: Think of a person who has a credit card, and that credit card debt is $10,000 so what this person does is sign up with other credit cards to pay the first one off, which means clearing one debt with another debt. It may resolve the problem quickly, but has not actually fixed the problem entirely.

That is what we are talking about here. Eventually QE injections of money into the market will not work, and it will end in tears for many. Again we are not saying this to make you panic, we are just telling you that fundamentally this is what the govt had planned before the very first round of quantitative easing, and so far their plan has not failed them, but like all things when it does in fact end it will not be pretty.