Euphoria Investing?

Investors are nearing the ‘point of maximum financial risk,’ says this chart


If you’re looking for warning signs in this market, you don’t have to look too far. The Fed winds are no longer at our backs, equity valuations are getting increasingly stretched, and the political climate isn’t exactly stable, to name just a few. Yet, investors continue to feast on a steady diet of new highs, with the Dow continuing to break into uncharted territory even as tech stocks come under pressure. Not a huge surprise, really. As Bob Farrell, the Merrill Lynch investing legend, once said about stock-market trends: “The public buys the most at the top and the least at the bottom.” It remains to be seen if the market is anywhere near a top, of course, but if this chart, which Steve Blumenthal of CMG Capital described as an illustration of Farrell’s views, is any indication, we are approaching the “point of maximum financial risk.”
Comment: The issue is looking for value. Today I bought shares of XEL.  Image source above is from the above article

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