Market Bulls want to project Buffett's recent earnings success as proof of current overall upside opportunities in the market. His opportunity play however was ultimately made successful by the taxpayers giant stabilization check. The big picture Buffett promotes has done little for investors over the last ten years and his current strength could be a result more closely resembling a pick pocket than a stock picker.
Marketing the continuation of a generational upside swing of post Great Depression Wall Street is rooted in market concepts that depend on abundant resources, both materially and financially. That may be a problem. But that is another post.
Despite what long term gurus would have the public believe, the market's usual day to day price action has, in large part, always been less about investing, and more about what price opportunities market players can get away with. Legions of willing buy side enthusiasts are part of the success of marketing one of Wall Street's products, the next great run.
In a world where opportunities only present themselves to buyers, there is no downside. But if markets were rational, efficient, and always reflecting value opportunities for buy side investors, Wall Street would not be doing as well.
So while the Bull will tell you the market has a lot of catching up to do, it is reality that is always catching up to bad investing concepts. Upside for all does not work. Something people inside Wall Street have always known.
