“For those who are of the view that the U.S. stock market feels like it will never decline (and that global easing is the panacea for growth and ever rising share prices), we suggest you look at the price of gold in mid-September 2011 and/or the price of Apple's shares in late-September 2012,” Kass says. “At those points in time, investor sentiment was at an extreme. Now look at the subsequent price drops following those heights and where those prices stand today.
“It is important to remember that over market history, progress often cuts with a manic edge,” Kass adds. “There is little or no permanent truth in financial markets as financial ideas have their seasons. So it is, as in the later stages of bull markets there is often a blurring between progress and fantasy.”