Key measures of market sentiment indicate rising optimism, which will reduce prospective returns. But an anecdotal sign may be even more important--the imminent IPO of Facebook.
As I hear that valuation is irrelevant for a stock like this--and in the short term that is correct--I have a sense that this much-hyped launch might mark at least an interim top for the U.S. stock market.
And with the S & P 500 only a couple of percent from its post 2009 high, I reiterate my advice to raise cash for better investment opportunities in the future.
S & P 500: 1325