Did Dilbert Just Confirm the Bull Market Has Legs?
When people who aren't connected to the market make major market calls, it is is worth listening to.
Last week, the creator of Dilbert came out and said that the market is manipulated and will have a drop of 20% sometime this year. You can read the full blog post here.
What (if anything) does this mean? Well, I for one agree that in the near-term the concerns are mounting. I mentioned some of my concerns last week on CNBC and wrote about why the AAII could be giving a sell signal currently.
I even did this radio interview with The Traders Network mentioning some of my near-term worries. You can listen here:
Now back to the original question: Does this market call matter? Well, in a word, absolutely. To me, this only is further proof that no one trusts this market and this bull market has a long ways to go. As we like to say here at my firm, bull markets peak at euphoria and seeing more talk about how "manipulated" this bull market is isn’t a sign of euphoria to me.
The other thing I thought of when I saw this call was it took me back to the summer of 2010. Back then, the market was cratering and both Tony Robbins and Mark Cuban made very public calls to get out of stocks. Well, right after those two calls we went on a nearly uninterrupted rally for eight months to new highs.
On August 20, 2010, tech titan and billionaire Mark Cuban said the stock market was for suckers and you should put your money in the bank. World renowned motivational speaker Tony Robbins appeared in this 15-minute video post on the coming economic collapse right about the exact same time as Cuban’s call. Since August 2010, the SPX (INDEXSP:.INX) is up more than 40%.
For fun, I dug up this article I wrote in late August 2010. Thankfully, I didn’t quite have the same worries as Mark and Tony did. In fact, I noted that there were more reason to be bullish than bearish.
Will the Dilbert call produce similar results? Of course, there is more to it than that, but I still think it suggests that as long as influential people with little actual market experience keep telling us why things are rigged or due to falter, I side with the bulls longer-term.
This article by Ryan Detrick, CMT, was originally published on Schaeffer's Investment Research.
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