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What's Next For Stocks? Forget Conventional Wisdom

Follow the leader is lasting game.
Bryce Knorr 
Published: May 5, 2009

Only a few short weeks ago, conventional wisdom in the stock market said the best investors could expect was an "L-shaped" bottom — a narrow trading range after the sharp decline of the past 18 months.

Instead, prices appear to be shaping a "V" bottom, thanks to the sharp rebound of the past two months.

Conventional wisdom, it seems, is bullish, with analysts now bolding predicting a recovery in the economy could happen sooner, rather than later.

The Wall Street flip-flop is the latest demonstration the only thing that's alive and well is the herd mentality. Whether it's the foolish desire to take needless risk in good times, or to jump off a cliff when the market goes south, follow-the-leader may be the only lasting game in town.

To read Bryce Knorr's complete weekly financial review, click HERE.



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