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Mutual Funds Weekly: This age-old investor behavior is taking stock prices down yet again

Stock buyers became too eager, too complacent, perhaps even too greedy, to sustain the rally. Read More...

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Stories of interest to MarketWatch readers this past week include an unconventional explanation about why U.S. stocks have hit a rough patch: namely, investor behavior. Stock buyers became too eager, too complacent, perhaps even too greedy, to sustain the rally.

As columnist Mark Hulbert reports, market-timing newsletters had turned unusually bullish — moreso than at any point in the past two decades, in fact. Such extreme optimism could take awhile to work off, meaning stocks would go lower, at least in the short-term.

— Jonathan Burton

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