The best thing I can say about this bull market is that there is no exuberance. In fact, this is the most unloved bull market ever as there is very little investor confidence in the strength of every rally. On the other hand, just about everyone agrees that this market is irrational, i.e. there are very few fundamental reasons that support the current market value.
Markets can be irrational for quite a long time. However, market exuberance can only be sustained for short periods, and often end with a bear market or crash.
For now, I'm staying long with this irrational market since no exuberance in sight. I'll be looking for signs of exuberance, such as relatives and friends telling me about their killings in the stock market. At that point, I'll protect our gains by reducing our exposure to equities, and hopefully protect some of our gains.
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This is not financial advice. Please consult a professional advisor.
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