Wall Street: Bulls Jinxing The Market
You can't swing a dead cat these days without hitting somebody or something touting how the stock market is going to the moon. That makes Wall Street traders nervous.
Over the weekend, Barron's ran a cover story called "Enter the Bull," with a big cover graphic reading "Dow 15,000."
This follows comments recently from Larry Fink, CEO of BlackRock Inc., the world's biggest asset manager, saying investors should be "100%" in stocks. Slate's Matthew Yglesias has declared this "recovery winter." Business Insider blogger Joe Weisenthal has been tweeting and posting that this is "morning in America." Even famously gloomy economist Nouriel Roubini thinks the stock market is in for more gains, following a 23 percent run-up in the S&P 500 since last October.
All of this agreement about the awesomeness of the stock market gives contrarian traders on Wall Street the heebie-jeebies.
"Consider this a public service announcement in the form of a plea to all bloggers, financial journalists, tweeters, etc," wrote Fusion Analytics financial advisor and blogger Joshua Brown Monday morning: "Please Stop Saying Things That Will Cause The Market To Top."
"On a trading desk you could get your ass kicked for that kind of calling-your-shot Babe Ruthery," he added.
Meanwhile, Stocktwits founder and CEO Howard Lindzon sees all of the bullishness as a sign that things are a lot closer to the top than to the bottom:
"Back in October they were nowhere to be found and their silence...made things ripe for a bottom," he wrote on Monday. "I am not expecting the end of the world on our next big selloff, but it sure feels closer to a top than it does to a place where I want to be long 100 percent equities."