Is The Stock Market Rally Tired?
This post by Jill Schlesinger originally appeared on CBS' MoneyWatch.com.
Watching the stock market action lately, I recall one of my favorite Mel Brooks movies, "Blazing Saddles". In it, Madeline Kahn's character Lili Von Shtupp, croons in Marlene Dietrich-esque "I'm tired...Tired of being admired, Tired of love uninspired, Let's face it, I'M TIRED!"
Many have been saying that 60% stock market rally is long in the tooth. Even those who were previous bulls are cautioning investors not to throw all of their chips into stocks right now. Others who have been hard core bears site low volume, insider selling and the eventual rate hikes as reasons to tread carefully. (Here are some retorts to those Nervous Nellies.)
I just think that investors, like Lili Von Shtupp, are tired right now and need a break. Let' admit it - this has been an exhausting year and we're all entitled to refuel. For the rally to continue, massive government liquidity and low interest rates will need to be replaced by solid corporate profits and economic growth. When that bull knocks knocking at the door, I fully expect investors to channel Lili and say: "Willkommen. Bienvenue. Welcome. C'mon in."
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