When Scary Headlines Don’t Scare – Climbing The Wall Of Complacency

From “Scary Headlines Don’t Deter Investors” by Bernard Condon, originally posted by Associated Press,

The U.S. economy is growing at a painfully slow pace. Greece still threatens the euro. Chinese stocks have just pulled out of a frightening free-fall. Big companies in the U.S. are struggling to boost profits.

You might think it’s been a rough year for investors, but it’s mostly been a smooth ride – and a profitable one.

Money is flowing into bonds issued by the riskiest of companies, home prices in some big U.S. cities are soaring, shares of technology companies are still near all-time highs – even after a drop this week – and auction houses are enjoying record sales of art. A Picasso painting sold at Christie’s for $179 million in May, the highest ever for an artwork at auction, prompting one dealer to exclaim, “I don’t really see an end to it.”