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I think that FOMO (Fear Of Missing Out) is at least partially responsible for the aggressive rise in stock prices since the beginning of the year.

Anecdotally, I have fielded questions from a couple of my students asking how to "get in on the action" in stocks (or in Bitcoin), since everyone seems to be making a lot of money in the stock market.

On Bubblevision (aka CNBC) earlier today:

Stock-based funds [primarily "ETFs"] raked in $24.4 billion for the week through Wednesday, a total that Bank of America Merrill Lynch's Michael Hartnett called "blockbuster."

Investor money gushed into stock-based funds during the first full week of trading in 2018, another potential trigger sign of an overheated market.

The total was spread around geographically, with $6.4 billion to the US and $4.3 billion to emerging markets...

Former Fed governor Randall Kroszner said the markets are "lacking in fear."

The VIX volatility index continues at record low levels even as the Dow approaches 26,000 due to massive liquidity looking for something - anything to buy (other than high yield bonds).

When the average Jessica or Joe on the street, along with college students and clerks at the gas station, are talking about how much the stock market is going up thanks to the new tax laws, one can't help but wonder whether prices are building toward a blow-off top.

The mood lately seems to be more FOMO than slow-mo, which makes me go "oh no."

Just sayin'

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