I love the new market highs. But...
I am old enough to remember 1999. And 2008. And today's tape is bringing back some old reflexes.
The S&P 500 closed at another record yesterday.
The Dow is over 51,000. May was the ninth straight winning week. Your account balance may look like a typo.
I am happy for you. Truly. Enjoy this part.
But this morning Nvidia's CEO called Marvell the "next trillion-dollar company" and the stock surged nearly 30 percent before lunch. Thirty percent. No new earnings. No new contract. Just a blessing.
That is the part I have seen before.
In 1999 it was Henry Blodget at Merrill Lynch handing out price targets like candy. In 2008 it was a Goldman analyst calling for $200 oil. In both cases the rally lasted another six months... and then it didn't.
The other tells are stacking up. Alphabet just announced an $80 billion stock sale. Bitcoin dropped roughly 6 percent overnight on no real news.
Warren Buffett is using the word "gambling." Jamie Dimon called the market "exuberant" at the Reagan National Economic Forum on May 29. These are people who do not waste words.
None of this means tomorrow goes red. Markets can stay irrational a long time. But if you are within ten years of needing your portfolio... you may want to watch the video below.
Talk soon,
Greg
Watch this now!
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