Markets can stay irrational longer than you can remain solvent, John Maynard Keynes famously observed. Unlike most practitioners of the dismal science, Keynes was an active speculator, and no doubt came to that insight the hard way.
Financial markets, from stocks to bonds to cryptocurrencies, have been exuberant lately—irrationally so, one might argue—on the premise that the Federal Reserve is near its maximum degree of policy restraint. That might be a delusion, on the part of the markets, the U.S. central bank, or both. In the meantime, investors are enjoying pleasant interludes known as bear-market rallies, lifting the spirits of the bulls while frustrating the ursine types among us.