My friend Michael Gayed at Pension Partners recently wrote that many market participants seemingly were simply forgetting that volatility mean-reverts, and that stocks tend to go down much faster than they go up and that “the time to panic is upon us.”
I am not sure that “the time to panic is upon us,” but even if the US stock market were to move higher a change in leadership would not surprise me with FANG type of stocks no longer advancing.
Don’t forget Charles MacKay’s observation that,
“Men, it has been well said, think in herds; it will be seen that they go mad in herds while they recover their senses slowly and one by one.”
