Most analysts now believe that the Markets are going to remain steady, leading to higher levels. However, consensus is not always a sign of wisdom.
Quote from The Big Picture blog:
And for those of you who are fans of the wisdom of crowds, allow me to remind you how poorly the consensus of professionals did last year. As we discussed yesterday:
“Consensus? Why should investors — or homeowners, for that matter — care much about the opinion representing the consensus view? That consensus missed the credit bubble as it formed, wrongly believed the sub-prime issue were “contained,” and utterly missed the top in housing. If you followed the consensus, you lost 50% of your money last year, saw your home value drop 30%, and generally got mangled in most asset classes other than Bonds, Cash and Gold."
Most people feel left out from the rally. Any number of people now say "the market has shown that it will go up every day. So, we should now buy without waiting for a dip". This is dangerous thinking that emerges at the top of the rally. "The Market cannot go down now" -this theory has been proved wrong when we had the bear market immediately after the 2003 - 2007 bull market.
My point is: investors should always wait for dips to buy. These dips come, that is for sure, it is our patience that gets exhausted quickly, leading us to buy almost at the top.