Several months ago we wrote that a bull market usually ends with a bang, not a whimper, and that before we saw an end to this historic bull run the U.S. stock market we would probably see some sort of ecstatic, climatic, euphoric climb to heights unknown.
Well, welcome to the Star Ship Euphoria. It’s just taken off from the Wall Street launch site. Its mission? To boldly go where the stock market has never gone before. The slow grind higher that has defined much of the year has suddenly turned into a rocket, and everyone is jumping on board.
Here is how giddy things are getting:
- The S&P 500 is up for an all-time record thirteenth straight month in a row.
- The Dow Jones Industrial Average finished positive for an eighth straight month, its longest streak in 22 years.
- The S&P has set a record this year for how long it’s gone without a 3% decline, and November continues that streak.
- The Dow has set 79 new record closing highs since the election.
- For the first time ever, it has reached four 1,000-point milestones in one year.
- It’s had two daily winning streaks lasting more than 10 days this year alone. The last time it did that was 1959.
- It’s had three nine-day runs. The last time it did that was in 1955.
- And now we just finished a month in which the Dow produced 10 record closes in one month.
That, friends, is euphoria.
Everything is skyrocketing higher. Just throw a dart at the stock board and buy whatever it hits, and ride it to infinity and beyond. Tech, financials, healthcare, transports, utilities, defense, energy. Heck, even some of the retailers that have been shot out of the sky in recent years by the Amazon missile may be rising from the ashes.
It appears the only thing going down these days are certain gentlemen once recognized as distinguished congressmen, television hosts, and Hollywood elites, but are now just dirty old men. And they are dropping like flies.
So, what do we do as greed and FOMO fuel this stock rocket?
So, what do we do as greed and FOMO (Fear Of Missing Out) fuel this stock rocket? Should we just keep chasing and riding this end of year frenzy? Or book some profits as we close out 2017? Maybe a little of both? After all, it’s not like we haven’t seen this show before. Of course the Star Ship Euphoria will return to earth soon.
At Good Life we are constantly watching for any signs of deceleration, but haven’t seen any thus far. For us, it would require a break below S&P 2,564 to make us even consider alerting mission control. And the odds of that happening before New Years are slim to none, and slim just jumped on board an ICBM to the moon. For us, we will cautiously ride this stock market euphoria to the stars, enjoying the views, but ready to press the ejection button at the first signs of a loss of cabin pressure.