February 18, 2011
The equity markets have staged a strong rally that began in September of last year. Going into our fifth full month of strong gains will make this time period a mini bull market to remember. News reports are beginning to trickle in of newly available data showing that investor's appetites for risky assets has returned. The tremendous amount of money left on the sidelines and placed in bond funds over the past few years has begun to reverse. The sheer magnitude of that flow potential is enormous and has been fueling the recent rally. As an investor and as a Financial Advisor the rising prices are a welcome development. But it also is a reason for concern because that great pendulum of investor sentiment is a contrarian's best friend. It would be hard to make the case that the pendulum has fully swung to the euphoria side. But in my opinion it is clear that the easy money has been made. Over the past two years finding great values in the stock market has been like shooting at the ground, it was hard to miss. That period is likely behind us now. Finding tomorrow's winners just got much harder.
Brennan R Redmond
(This article contains the current opinions of the author but not necessarily those of Brighton Securities Corp. The author's opinions are subject to change without notice. This blog post is for informational purposes only. Forecasts, estimates, and certain information contained herein should not be considered as investment advice or a recommendation of any particular security, strategy or investment product. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities).