With markets feeling quite top-heavy, I am going to get ahead of an argument that I have heard in the last “real” bear market, meaning the 2007-2009 market*, specifically the argument against shorting. In any market, there tends a very “protective” mindset from market bulls. Most that I have spoken in the past with tend to have a “This market is my property and the value should go up” mentality. As such, they seem to take things a bit personal when market bears tell them “This market is overvalued”.

They seem to get insulted and defensive and look for someone to blame because they can’t believe or don’t want to believe any reasons that their market value could possibly be going down. In their minds, the value should always go up, as it has since the beginning of the US Stock Market (from a nominal perspective). In fact, in many cases, the market “seems” late to digest any bad news at the end of bull markets.