This September is shaping up to be a reversal of last September, when it seemed that every financial institution was plagued by bearish rumours. Even relatively healthy investment banks got hammered.
Is any of this true? We don’t know.
But what has definitely happened is that the tone has changed. Instead of the market getting beaten down by bearish rumours, it seems to be inflated by bullish ones.
Let’s hope things don’t continue to follow along in this mirror image fashion. If the pattern continue, we should see five more months of increasing euphoria followed by a devastating downward turn that dominates the remainder of the year and smashes almost all historical records.
We can also put a more positive spin on this. Last year, the bearish rumours tended to be right both about the specifics and the general market trend. If they’re right this year, things are looking pretty good.