by John Rubino
One of the last things to be tossed overboard in the late innings of a bull market is discrimination. Instead of comparing the valuations of different assets and buying relative bargains, investors (known in retrospect as “dumb money”) just pour cash into the things that have been going up. This gives those favored assets one last parabolic spike before the inevitable end-of-cycle crash.
It of course has to be noted that critics of the current financial bubble have been predicting its end for a while, and anyone who listened passed up what turned out be easy money.
Still, what’s happening now is ridiculous. From today’s Wall Street Journal: