Not much action in the markets yesterday. The Dow barely budged, but still ended the day in positive territory – the 7th day in a row of gains. Gold fell $6.
Investors beware!
Why? Because they are trapped. After 12 years without a real gain, they can't afford to miss a major rally. So, they're inclined to take chances. But is this rally worth betting on?
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The Overvalued Part of a Market Cycle
I had just gotten home from arguing with the in-laws about how they were idiots for not buying gold instead of those stupid stocks and mutual funds, and their laughter was still ringing distastefully in my ears when Eric Fry here at The Daily Reckoning put up a chart of the P/E ratio of the S&P500 over the last 30 years since 1981.
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