And Now The Small Investors Have Come Pouring Into Stocks...
As the old Wall Street adage goes, “let the suckers have the last ten percent”.
How many times has this happened since the stock market collapse with the recession? Stock prices collapse, and the rich buy up stocks. The market stays high for awhile, and the little folk join in. When the rally's been milked for all that's possible, the puppet masters pull their profits, and the little guy gets stuck again.
The real driving force to this too-high stock market is low interest rates paid on safe savings (where bank CEOs etc get ever-higher salaries and bonuses). The market went down Thursday with the fear that the fed was going to raise interest rates. Friday, the fear must have been not-so-much.
I don't do the stock market any more, just hold a few small-company stocks that would've been good bets if the recession and foreign competition hadn't messed with small company growth in the US. I used to be pretty good at evaluating small-company potential, but now the numbers all just look weird to me.