August 3, 2015

History Rhymes

Perhaps an explanation of the market rise over the last years in the face of growing evidence of a slowdown in economic and profit growth is as simple as Paul Tudor Jones reminding us in the above quotes that lost sensibility and irrational behavior often occur at or near the terminal stage of important market moves.

Of a more substantive concern to me of late is that the market's leadership has been narrowing, and increasingly a bifurcated market has developed that is consistent with prior periods in which markets topped in early 2000 and late 2007.
"What we have learned from history is that we haven't learned from history."
-- Benjamin Disraeli
History rhymes.