Not surprisingly the markets have moved quickly upward recently. It is not surprising that they moved quickly because this is the established pattern. It might be a little surprising that it has happened so soon, but if one could predict the timing of the market ups and downs one would be retired by now. Right?
But I am concerned that the rise has been sustained. Is it the product of too much optimism or pent up anticipation of a recovery or just the effect of wishful thinking. Perhaps it is even the fear of missing the recovery that has prompted the rise.
But too much optimism too soon is a cause for concern. And as always, the market will correct itself. Some economists predict a “W” is in the cards, with the markets taking another nose dive before the real recovery sets in. If the market rise had been moderate and did not last very long without a period of rest, then one might look on it as a reasonable recovery. But the lengthy period of steady increases gives some cause for concern about whether that dip is in the near future. The summer doldrums are just a few weeks away. The market might take another holiday.