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!"
(AP Photo/Mark J. Terrill)

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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(CBS)
Jill Schlesinger is the Editor-at-Large for CBS MoneyWatch.com. Prior to the launch of MoneyWatch, she was the Chief Investment Officer for an independent investment advisory firm. In her infancy, she was an options trader on the Commodities Exchange of New York.
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    Jill Schlesinger, CFP®, is the Emmy-nominated, Business Analyst for CBS News. She covers the economy, markets, investing and anything else with a dollar sign on TV, radio (including her nationally syndicated radio show), the web and her blog, "Jill on Money." Prior to her second career at CBS, Jill spent 14 years as the co-owner and Chief Investment Officer for an independent investment advisory firm. She began her career as a self-employed options trader on the Commodities Exchange of New York, following her graduation from Brown University.