U.S. stocks are behaving like Japanese equities in the 1990s, meaning the Standard & Poor’s 500 Index may return 40 percent in the next year, according to Bank of America Corp.Sounds like a great time to be "all in," right?
...A “melt-up” rally in the U.S. may be triggered by central bankers keeping interest rates near record lows, an economic recovery or an undervalued dollar, Bank of America strategists wrote in an Aug. 26 report.
Well, maybe not so much. Paul La Monica, editor of CNNMoney.com, writes
The market keeps chugging along. But with speculative stocks like AIG and Vonage leading the way, you have to wonder if the rally won't soon go off the rails like Ozzy Osbourne's Crazy Train. Ay-Ay-Ay!La Monica writes that during the light trading sessions of the summer, day traders may have pushed the prices of weak financial companies and other speculative issues. He cautions
...once big institutional investors return, many of the hot momentum stocks could plummet. Some fear that could bring the whole market down.Ah, what's a poor investor to do?
