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When it comes to a widespread consensus in the markets, I tend to get very nervous.

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Too Much Conviction in Consensus

When it comes to a widespread consensus in the markets, I tend to get very nervous.

Maybe itā??s my contrarian nature, or maybe itā??s my suspicious nature, but whatever the reason, when it comes to a widespread consensus in the markets, I tend to get very nervous.

Indeed, Iā??ve been struck by how much conviction there seems to be out there in the general consensus among many on Wall Street. These days, it seems thereā??s a huge contingent of advisers who think stocks will continue going higher and higher in 2014.

Thereā??s also a cadre of bond haters who think that yields will continue rising and that, therefore, bonds will continue to be dead money. And then thereā??s gold. Not surprisingly, the consensus here is that gold is for losers and that you have to run for the exits while you still can.

Read more about the troubling consensus on Wall Street at Eagle Daily Investor.

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Written By

Doug Fabian is the editor of Successful Investing and High Monthly Income, and is the host of the syndicated radio show, "Doug Fabian's Wealth Strategies." Taking over the reigns from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbertā??s Investment Digest. For more than 30 years, Successful Investing (formerly the Telephone Switch Newsletter) has produced double-digit annual gains. Doug has become known for his expert knowledge and timely use of innovative tools like Exchange Traded Funds, bear funds and Enhanced Index funds to profit in any market climate.

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archive

Too Much Conviction in Consensus

Maybe itā€™s my contrarian nature, or maybe itā€™s my suspicious nature, but whatever the reason, when it comes to a widespread consensus in the markets, I tend to get very nervous.

Indeed, Iā€™ve been struck by how much conviction there seems to be out there in the general consensus among many on Wall Street. These days, it seems thereā€™s a huge contingent of advisers who think stocks will continue going higher and higher in 2014.

Thereā€™s also a cadre of bond haters who think that yields will continue rising and that, therefore, bonds will continue to be dead money. And then thereā€™s gold. Not surprisingly, the consensus here is that gold is for losers and that you have to run for the exits while you still can.

Read more about the troubling consensus on Wall Street at Eagle Daily Investor.

Newsletter Signup.

Sign up to the Human Events newsletter

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