The Stock Market Cycle Chart

Stock Market Emotions Chart

Here is a chart of the stock market which allows you to predict where the stock market is headed based on how you feel.  (I have seen it before but saw it again in a recent Market Watch Article) Think your a smart investor then it might be time to sell.

static1.squarespace.jpg

It's hard to say where exactly we are at right now in the market cycle. I seen a lot of people who are probably a little too confident in their stock picks but I don't think we are quite at euphoria yet.  Somewhere around excitement is my guess.  

Print this out and hang it at your desk so when the next bear market hits and you panicking, know that the market is not that far from turning around.  

Don't let emotions dictate your investment strategies, and avoid being stuck in the behavior gap.  Have a plan, stick to it.  Incorporate our view on bonds as part of your investment strategy which will help you ignore the next bear market.

Where do you think we are in on the Stock Market Emotions Chart?