Saturday, February 19, 2011

Fear of crash dominates despite continued bull market

Are we approaching a catastrophic moment?

Fear of 'Catastrophic' Crash Rising Despite Bull Market
In an unprecedented move, the number of investors fearing a catastrophic stock market crash is rising even with the stock market at 2 ½ year highs.

The unusual dislocation comes from two distinct reasons: a lack of trust in the U.S. financial markets following the so-called Flash Crash last May and the collapse of Lehman Brothers in 2007.

My amateur observation, at the very least - these two reasons are unsubstantiated and are based on emotion and pain from recent events. As time passes by and nothing "catastrophic" happens to the general markets - could we actually face an unprecedented boom as private funds are put back into the game? Could a political change bring about this boom?


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