Perfection Prevails

Perfection prevails

Our 1997 analogy remains the chart that keeps us from turning outright bearish. There are plenty of tempting short signals out there, but markets driven by momentum and speculation rarely stop simply because they look expensive.

For now, perfection continues to prevail. The crowd keeps chasing upside, leverage keeps building, and downside protection remains unwanted. History suggests that can continue longer than expected. History also suggests it eventually matters.