All Is Not Lost Until All Succeeds

All Is Not Lost Until All Succeeds

Cryptic, this one is, and contrary, to be sure. What it means is that when all has succeeded, then it is time to worry, for when there are no problems, and when everyone thinks everything is rosy, then all buyers will have bought stocks. At that point, there will be no more fuel available to push stocks higher. Furthermore, there will be no way for perceptions to improve. Perceptions will worsen and stocks will fall. The classic example in recent history was the first quarter of 2000, when we had successfully come through the millennium Y2K scare and the consensus was that the Internet would solve all our problems. As most investors know, technology stocks led the way down shortly after.

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