the justification is that we are awash in cash, sounds like a mini 2001. CEOs have already cashed out, this is just the public buying into distribution by the bigger institutions. Should be interesting how this all plays out..
Based on some of the online broker statistics, I reluctantly agree the public is in the market to some extent. However, I agree to a larger extent with MacroEvent's analysis. There has been a liquidity war that has created some of the biggest distortions I have ever seen in the markets. Granted, I have a limited history and did not experience the 1970s markets and their wild gyrations, but this has to rival that time in history. Combine the leveraging of the funds with the constant central banking intervention, the ridiculously low implied vols (hence a market that has even more leveraging and more sensitivity to any sudden surge in volatility) and you have this scattered, illiquid mess.
Wait until you discover the global scene. When Greenspan took the leap a few years ahead of you, so far, he summed it up with "we are no longer an island in a sea of turmoil". Can you imagine what it will be like when greenspam, you and macro do find out where some of the rest of us are now??? Looking for precidents while unknowingly in a transition out of the past is where most of the troops are camped...no so for those others who think.. "not more of the same but the other......" The transition is going to steepen.... it turns out. what is being invented may become named something like.. "the electronic exponential"....
Lol either he is saying that money is on the sidelines waiting for a sign to get in that will result in a huge rally up due to a technology dividend, or, he is saying that money is waiting on the sidelines to go short once they see the signs that are reminiscent of what happened at a prior top, and that the high level of electronic trading is going to exacerbate the ensuing crash, or, none of the above. Probably the second one though and if so I am in agreement.
again it is liquidity driven, leveraged money chasing stocks up with the perceived cheap ie liquid price of oil.