On of the biggest threats to investors’ wealth is succumbing to our most ancient instincts when making investment decisions. We are seeing signs of that behaviour today as US markets climb ever higher despite little – if any – financial reasons for this to be the case. There are warning signs, however, that this is leading to complacency which in turn will potentially lead to another investment bubble. Apropos of this is a headline that may be of interest for believers & non-believers of this Pollyanna world alike: Corporate yields are only 125 basis points higher than Treasuries. It’s the smallest spread since 2007. Hmmm. Now I concede that 2007 is a very, very long time ago but those with good memories should recall 2008 (only a very long time ago & a few months after the last outbreak of Nirvana) & that that particular time actually didn’t go so … Continue reading Bubblemania?