Wednesday, April 10, 2013

Where's the Irrational Exuberance

"Be fearful when others are greedy and greedy when others are fearful." ~ Warren Buffet

Despite record highs for stock indices,  I don't see much irrational exuberance yet.  In fact, many investors are like me, cautious and expecting a correction.  The decline of 2007 to 2009 is still fresh in my memory, as it is for many others.  

The market has gone over 5 months without a 5% correction, which is surprising since there are an average of five 5% correction in a year.    Still,  I don't see much greediness either.   In fact, people I know seem to be mostly in cash waiting for a correction.

Perhaps, this is the time to be greedy.   Unfortunately, I'm too afraid to be greedy with many market indices at all time highs.

For more on The Practice of Personal Finance, check back every Wednesday  for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

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