When there is a market environment such as the one we find ourselves in, it is easy to get complacent and comfortable in the assumption that your portfolio will continue to climb uninterrupted. Who can blame you for thinking this way for that’s exactly what has been going on. Another metric which confirms how fearless the markets are is the Volatility Index, otherwise known as the VIX. This index measures the amount of fear or lack thereof as it pertains to investor sentiment looking out 30 days. For months now the VIX index chart has stayed below 20 which historically is a sign of a courageous and overwhelmingly confident marketplace.
Indeed this rally can continue and most probably will, point being it best to remember that historically equities, commodities and indexes whether they are in a bear or bull market, usually pause and or reconcile at some point and time. By no means is this a bearish call, just a friendly reminder of not getting too comfortable or complacent. 🙂
Have a safe and prosperous week.