Things you don't see at market bottoms: Giddiness revival edition

The last time I published a post in a series of "things you don't see at market bottoms" based on US based investor enthusiasm was in January. That's because market exuberance had significantly moderated since the January top. Guess, what, the giddiness is baack!

As a reminder, it is said that while bottoms are events, but tops are processes. Translated, markets bottom out when panic sets in, and therefore they can be more easily identifiable. By contrast, market tops form when a series of conditions come together, but not necessarily all at the same time. My experience has shown that overly bullish sentiment should be viewed as a condition indicator, and not a market timing tool.

Past editions of this series include:

• Things you don't see at market bottoms, 23-Jun-2017
• Things you don't see at market bottoms, 29-Jun-2017
• Things you don't see at market bottoms, bullish bandwagon edition
• Things you don't see at market bottoms, Retailphoria edition
• Things you don't see at market bottoms, Wild claims edition
• Things you don't see at market bottoms, No fear edition
• Things you don't see at market bottoms, Paris Hilton edition
• Things you don't see at market bottoms, Halloween edition
• Things you don't see at market bottoms, CFD edition
• Things you don't see at market bottoms: Rational exuberance edition
• Things you don't see at market bottoms: Retail stampede edition
• Things you don't see at market bottoms: China edition

I reiterate my belief that this is not the top of the market, but investors should be aware of the risks where sentiment is getting increasingly frothy.

The full post can be found at our new site here.