There remains widespread belief that as soon as a bullish Dow call starts blasting from newsstands, it is time to sell.
Analyst John Hussman is already out with a piece warning it’s time to hit the ejection button:
Rule o’ Thumb: When the cover of a major financial magazine features a cartoon of a bull leaping through the air on a pogo stick, it’s probably about time to cash in the chips.
This kind of backlash against mainstream bull calls stretches back at least a couple decades.
And it’s usually wrong.
As Josh Brown has noted: “the knee-jerk reflexive contrarianism on the web each weekend is just as unhelpful as blindly believing in whatever the editors choose to sell us that week from the newsstand.”
We went through the history of the Dow, from the 1960s to today, to prove why this is complete hogwash.