More retail investors...Market Crash?

Was reading thru a discussion forum and people were citing the increased coverage of media reports on bullish retail investors late to the party as an INDICATION the market is going to Crash.

I beg to differ, the appearance of more late-comers retail investors(unlike the early retail investors like ourselves) does not fore-tell a crash.
It is actually just an indication of optimism and possibly exuberance.

Exuberance will only mean PRICES of stocks will fly higher and higher..
It can go on for years...

The CRASH comes only because of ECONOMIC UNCERTAINTY or ENVIRONMENT UNCERTAINTY.

So there is a difference.. is more retail investors a CAUSE of the Crash... or is it an EFFECT of the Optimism in animal spirits.

Portfolio Update December 2010

2010 Year to date (YTD) Return Portfolio 6.79% Equities 13.17% Dividend/Interest for 2010    $191,875 Absolute Return Since 11/2007 Portfolio 12.03% Equities 32.41%

As expected, M&A activities have been going on and it might indicate the optimism of economic recovery by companies.

2008 was the year of doom, 2009 was the year of gloom/uncertainty, 2010 was the year of reviving confidence, 2011 could be the year of optimism and euphoria. If you have not enough equity allocation, allocate more(buy on dips). If you have the desired allocation, keep on the sidelines or do short-term trades (buy on dips and sell on rallies) instead.
 

Kaminsky's Call: Hedge Funds Do Worse Than Market? - CNBC

Kaminsky's Call: Hedge Funds Do Worse Than Market? - CNBC

More shockingly, the study, aptly titled "Higher Risk, Lower Returns: What Hedge Fund Investors Really Earn," found that simply buying and holding stocks over that period produced even better returns.

Something I have experienced and probably will never return to hedge fund or mutual fund investing again.