"Definition: Irrational exuberance is when investors are so confident that the price of an asset will increase they lose sight of its underlying value. They get into a bidding war, driving prices up even further"
"It was a phrase first coined by former Federal Reserve Chairman Alan Greenspan in 1996 to describe the investor psychology that drives an asset bubble. In his speech to the American Enterprise Institute in 1996, Greenspan described what stock investors feel at the top of a bull market. This irrational exuberance causes them to overlook deteriorating economic fundamentals in the pursuit of ever-higher returns.
The danger of irrational exuberance is that it doesn't last. The frenzy of greed then turns to the panic of fear, which drives investors to sell at any cost. This collapse in prices can spread to other asset classes and ultimately the entire economy."
Irrational exuberance + record margin debt + FED's uncertainty + China slowing down + Europe + tanking in EM =
IMMINENT stock/bond/precious metal/housing market correction/crash
First housing, then precious metal, then bond, then stock, or in whatever order........
You have the opposite disease. You are one giant missed opportunity. Living your life as if you will most certainly die in the next few minutes. One of theses days you will be correct. However living each day in fear of the fact you "may die" prevents you from actually living, so........
Looking at the big picture, this year is the year where people see the market go up and feel that they are missing the run. However, there will be consolidation along the way. The market is currently at technical resistance going into option x week. Its a great time for day traders as they take advantage of the daily volatility.
We have seen bond funds sell off, stock price rise, and housing prices increase, but we have yet to see commodity prices rise from demand and supply of an improving world economy. The party has just begun, the music will get loader as more people join the party that's when we will sucker punch them and take their money. Going into next year there will be irrational exuberance.