Bullish Optimism Beginning To Reach Extremes

Since the end of last year the bullish optimism for 2013 has risen to an almost fevered pitch.  Concerns of any further disruption from the Eurozone have faded into the mist.  With the "fiscal cliff" issue resolved, and little concern that the "debt ceiling" will not be raised, the worries of a domestic drag have been all but alleviated.  Furthermore, despite slowing earnings and revenue growth, the outlook for 2013 earnings growth is remarkably ebullient.  According to the vast majority of the media, analysts and portfolio managers there is absolutely nothing to be worried about, particularly given the fact that every major central bank is now engaged in some sort of financial easing campaign, and the markets should surge to record highs by year end. However, maybe it is in this very optimistic outlook that we should find at least the smallest grain of concern.  Bob Farrell once st...