Anyone investing in the stock market for a while has heard some variation of the story about the old investor that returns to his office after lunch and tells his partner to sell out the portfolio and go to all cash. His astonished partner asks what in the world happened at lunch that convinced him to do this? The old veteran investor tells him that he went to get a haircut and his barber started giving him stock advice. If the market had reached a point where the barber was giving him stock advice, then everyone that could possibly be in the market was, and it was time to get out.
Sometimes the adviser is cab driver, or the grocery clerk, or shoe salesman, it matters not, the point is the same. By the time an investment becomes water cooler chatter it is time to be leery.
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