We are not huge fans of market anniversaries or faux celebrations when the Dow crosses a round number.  However the extremes of the past few years have provided investors with a crash course in market behavior.  Not only did the market teach us all about its potential risk, but it also was a lesson in the false promise of punditry.  In short, if you did not have a system that recognized the change in market character you are likely still on the sidelines. The stock market has moved higher after having stalled out in 2010 in large part because earnings (and the economy) have performed better than expectations.  There indications that risk is no longer a four letter word.  Investors have plunged back into hedge funds and market sentiment is now back to the high end of the range.  In today’s screencast we look back at the past two years in market performance.

Items mentioned in the above screencast:

The bull turns two.  (Crossing Wall Street)

The idiot-maker rally.  (Clusterstock)

Hedge fund assets have rebounded to pre-crisis levels.  (WSJ)

The rebound in market sentiment.  (Bespoke)