Contrarian Investing
One day the shoe shine attendant asked JP Morgan if he and his friends could buy some stock through Morgan’s brokerage. The three friends had about $40—a lot of money in 1929. Morgan hurried back to his office, and ordered that his company was to sell every single share of stock on its books by the end of the day.
Morgan simply asked, “If the shoe shine boys are buying stocks, who else is left?” The 1929 stock market crash was only a few days away, and Morgan looked like a genius.
Today everywhere advisors and ordinary people are saying buy the S&P 500 or other Indexes. Or ETFs which themselves own bundles of company shares.
Are we at the same point as JP Morgan? Will new buyers dry up?
Certainly feels that way to me which is why bonds and cash are attractive.