Stock Indices

Is This the “Mother Of All Blow-Offs?” Probably

Is this the “Mother Of All Blow-Offs?” Probably. Historically, this is the type of market behavior which has marked the blow-off top of speculative manias and has preceded serious market accidents. Chasing the price-momentum higher and waiting for a bigger idiot to buy shares from you works well until the music stops. Then everyone gets hurt.

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This Simple Indicator Suggests S&P 500 Still Far From A Bubble

...2017 provided many good times [but,] for worriers, the low volatility and steady gains of last year signal bad times are likely in 2018...[and] they have a point. It’s true that good times can’t last forever. [That being said,] it’s also true that we can spot when the good times have gone too far with this simple indicator.

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Curb Your Enthusiasm! It’s Time to Reset Expectations – Here’s Why

Valuations and sentiment play into future stock market returns...as valuations indicate what people are willing to pay for a dollar of earnings. During times of exuberance, investors overpay for earnings and, during times of fear, investors underpay for earnings. Currently, two measures of sentiment are sending cautionary signals that 2018 may not be as strong of a year.

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