Last night something amazing happened. Alabama lost a football game. It doesn’t happen very often, so remember this moment. It got me thinking about the markets though. Recency bias has a way of making people think the current leaders will never fail, or make it difficult to imagine that happening. For the longest time it was hard to imagine a college football world where Alabama wasn’t the top team. However, that was obviously going to happen at some point. Now it’s time to make way for a new champion: Clemson. The same goes for the markets. Eventually whatever is the very best performer at the moment will fall out of favor.
Here’s what I’ve been reading this morning: