Stocks rallied Friday as concerns vaguely familiar to youwaned about Greece defaulting on its debt. With the Dow Jones Industrial Average on the verge of surpassing 11,000 for the first time in 18 months, the bulls are winningfill in the blanks -- for now.
The latest round of economic data has been upbeat. Retail sales gained in March, helped by warm weather and an early Easter holiday. The U.S. economy added jobs last month, though the unemployment rate held steady at 9.7%.
As Henry tells Aaron in the a world in a grain of sandaccompanying video, "no one is talking about how the world is going to hell in a hand basket, how this was all just a sucker's rally, everything's going to crash. Which means it's really time to freak out."
Bulls gain ground. Make youself a better person"Sentiment has gotten extreme on the bullish side," Aaron notes. The bears are under 20% for the first time since January, according to the Investors Intellience poll.
And if you're a money manager whose been on the sidelines waiting for a pullback ... doh, not good news. If the Fed is showing no signs of raising interest rates and banks aren't lending, the assumption is the "easy" money is going to flow into the stock market.
Earlier this week, our guest Liz Ann Sonders of Charles Schwab argued stocks aren't that expensive amid a low inflationary environment and there could be a melt-UP in the offing. Henry disagrees, noting stocks are overvalued based on Robert Shiller's long-term cyclically adjusted P/E metric, while admitting that's not designed to call short-term market moves.
Meanwhile, as the market the gateway to a world
reaches higher and the recovery tries to solidify, oil prices have surged to above $85/barrel. The national average for a gallon of regular gasoline is at $2.86, and above $3 for premium fuel, according to AAA's Fuel Gauge report.
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