While stocks are melting up and the dollar is fading, below is a look at “the madness of people.”

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“I can calculate the motions of heavenly bodies, but not the madness of people.” — Sir Isaac Newton 

By Jeffrey Saut, Chief Investment Strategist at Raymond James
February 16 (King World News) – 
Samuel Chong writes:

“A well-known physicist and scientist in England, Sir Isaac Newton was also an investor, though not a great one.  A little known fact about Isaac Newton is that he lost 20,000 pounds ($2.72 million in today’s money) due to his speculation in the South Sea Company stock in the 1720s during the bubble.  “I can calculate the motions of heavenly bodies, but not the madness of people.” is the quote on his abilities of calculation after the loss of his investment.  It is not clear whether his loss on the stock market was a monetary loss or an opportunity cost loss.”

Jeffrey Saut continues:  Indeed, “I can calculate the motions of heavenly bodies, but not the madness of people,” and, that’s kind of how I feel now that the S&P 500 (SPX/2349.25) has overrun my short-term model’s maximum price objective of 2330, as well as exceeded my late-January/early-February downside “window of vulnerability” call. As stated, “Our models are not always right, but they are right a lot more than they are wrong.” In this case it appears that, again as stated, “It has become dangerous to forecast beyond a few hours because a DJT tweet or pronouncement can occur at any moment.“…

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