The markets have been on fire since Trump won the US Presidential election back around mid November.
The US Fed has also been leaning towards a rate hike. In spite of this US markets have soared, reaching new highs. Canadian TSX has followed. The financial sector, no surprise, has made the gains with utilities and telecoms getting sold.
Stories of the Dotcom bubble come to mind where there were cases of people quitting their jobs because they were making so much money in the markets.
With rising portfolios comes the thought that we have the magic touch, but we need to realize almost everybody else is doing well. It's generally the market making us winners not entirely our skill. The strategy we employ in this environment might not work and could reverse if the market sentiment changes.
Those Dotcom bubble trader examples were wiped out and out of a job when the bubble burst. It was an illusion in a different type of market.
We need to keep our heads and not let our success get to our heads. Otherwise we take unnecessary risks that come back to haunt us later.
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