Trees Don't Grow to the Sky

The S&P 500 leapt another 2.1% today and is up 9.5% for the month. This rally since the short-term bottom in August is lasting longer than I expected.

The pessimism (some would say realism) that was setting in during August has disappeared and been replaced with mania. You can see this in the levels of call buying and in the AAII sentiment survey.

Doing the right thing in investing always feels wrong, at least if you enjoy being in the company of your fellow man. It couldn't be any other way.