Global investors the most bullish in three years, is that not reason enough to be fearful?Posted on 23 January 2013 with 1 comment from readers
Plenty for the beautiful Sara Eisen to be cheerful about in reviewing the most bullish survey of global investment sentiment in three years. She speaks on Bloomberg Television’s ‘Money Moves.’ The VIX fear index is also tracking multi-year lows.
However, we recall Warren Buffett’s advice ‘To be greedy when others are fearful and fearful when others are bullish’ or words to that effect. His impeccable investment logic is that when people are most bullish then the good news is all in the market and there is only downside to come, though admittedly this Bloomberg survey was not exactly short of possible future problems.
We also note that over the past three years the euro zone crisis has come and gone in waves and the same could be said of US fiscal problems. Perhaps we are just in a soft patch again at the moment…