Retail Investors, Loss Aversion, and The Fear of Missing Out (“FOMO”) Being a good contrarian, let me toss this one out there: skyrocketing stocks may go higher yet from here. In fact, I see two factors fueling further gains, at least in the short run: One. “The Headline Factor” & (some) retail investors’ Fear of...Read More
Shiller: Why Smart Money Can’t Stop a Housing Bubble At least according to economist (and Nobel Prize winner) Robert Shiller, housing is more prone to bubbles than stocks for two reasons: 1) housing supply eventually responds to higher prices, satisfying demand (and then some); and 2) unlike stocks, it’s not possible to short housing —...Read More
“The Death of the Housing Market?” “The reports of my death are greatly exaggerated.” –Mark Twain It’s hard to be a student of markets without some passing familiarity with so-called contrarian indicators: those harbingers that signal that a market is at an inflection point, presenting investors with a singular opportunity. That opportunity can either be...Read More
