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STRETCHED

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The U.S. stock market rubber band is stretched.

But that doesn’t mean it can’t stretch further.

We’ve seen this song and dance before. The stock market expands farther than anyone ever predicted or fathomed, and then just keeps stretching.

Call it what you want. The latter stages of a boom cycle. A blow off top. The ninth inning. We extended past rhyme and reason a while back, and now we’re passing irrational exuberance well on our way to runaway crazy train.

When will our rubber band snap, or at least tighten some? Your guess is as good as ours, but probably not until the very last of the die-hard short sellers finally wave the white flag and sign the letter of surrender. Until then, this stock market rubber band may have a little more stretch left.


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BFvsGF Jessie of YouTube: https://youtu.be/QySndxAsntU?t=1m22s

The Big Picture: By Howard Potts [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via Wikimedia Commons