Irrational Exuberance Again?

The blog world just gets richer and richer. 

Seeking Alpha, a great stock blog, quotes from a weekly letter from mutual fund manager John Hussman in which he addresses our return to irrational exuberance.  It sure feels that way in the market.

Here’s a taste of the letter:

That’s not to say that stocks cannot move higher, but we continue to observe speculative merit without investment merit. Indeed, investment merit is so lacking, and speculative conditions so extremely overbought (the recent, uncorrected spike is beyond belief on a P&F chart), that a vertical decline off of this “high pole” shouldn’t be ruled out. Patently overbought conditions in patently overvalued markets are the stuff that ruined retirements are made of. Though many investment managers are frantic to “make their number” for the year, there’s a certain recklessness in taking substantial investment risk here.

I’ve been selling in this market, but I’m no public stock manager and I also sold Yahoo! over a year before it peaked in 2000.

But one thing’s for sure.  Buyer beware.