Stock market booms are fun — until they end in tears.
That’s one of the lessons from the past few months. As the Dow shattered one record after another — it shot from 25,000 to 26,000 in just seven days — bullish sentiment became way too extreme. Nothing could knock the market off its relentless climb.
Stocks got so hot that they were vulnerable to a shock — which is just what happened this week. Fears about rapidly rising bond rates sent the Dow plunging 1,175 points on Monday, and then 1,033 points on Thursday.