Gosh, the market is like the movie "Dead Calm"! It has been a long time since I have seen it so calm - especially at the top of the market.
Is it because of the accelerating influence of indexing? "Who cares what the price is! It is in the index." While I do think indexing is a good idea in many ways, but has it gotten too big as a percentage of market assets?
Like portfolio insurance in the 1980's, mortgage backed and derivative securities of the 2000's and countless other "safe configurations or products", investors tend to gain a false sense of security from widespread practices that everyone else does.
Be assured indexing, while good, has its limitations.When the market goes South, are investors going to stay the course? History tells us they will not. So if you are indexing, take your Rolands and prepare for the roller coaster that you HAVE TO STAY ON to be successful. Unlike amusement parks, the "riders" are not clamped in their seats!
