Yesterday, Tyler Durden offered a post from Jim Quinn of The Burning Platform Blog (h/t Maggie’s Farm):
The gist: it’s a bad idea to buy stocks on margin when everyone loves stocks, and when you think you can't lose.
Quinn’s post was entitled: Buying Stocks on Margin at the Top: They Never Learn.
It’s like the movie Groundhog Day. Greed and hubris are the downfall of the mighty. Believing it is different this time is the mistake of the feeble minded. Watching the ensuing carnage will be a laugh riot. Seeing the blubbering of the bubble headed bimbos, pinhead pundits and Wall Street shysters when the inevitable collapse occurs will be worth the price of admission. If you think we're wrong, pony up to the trough, borrow some money and buy Twitter on IPO day. You can’t lose.
Of course, the market could definitively go higher from here. The market top that Quinn envisions could be months in the making.
Yet, if you believe in contrarian investing you will be thinking right now that everyone loves the stock market and that everyone hates the precious metals, especially the mining stocks.
Just a thought.