Extreme Anxiety: Evaluating Current Market Levels

Posted on May 24, 2012 | Investing

Keeping an eye on the market over the last year may have given you a bad case of emotional whiplash, with its apparent moves from one extreme to the other. It is easy to get swept up in the euphoria of a bull market as market levels rise, and then succumb to the deep pessimism of a bear market as the bottom apparently drops out of the market. However, markets rarely stay at historical extremes; eventually, they move back toward “normal” levels, although the speed of this adjustment is far from certain. The big question is: What is a “normal” level?

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