Bulls: All we have been hearing since 2011 is how the stock market is going to crash but from a fundamental standpoint the bull market in the stock market has more room to run.
Bears: Everything is in place for a serious stock market correction so this autumn should be one of market turmoil & shock.
Whose arguments are most convincing? Read on.
All we have been hearing since 2011 is how the stock market is going to crash but these charts illustrate that the retail market is not in crash mode just yet and it is still nowhere near the overbought levels of 2007.
There’s no real reason to suspect from a fundamental standpoint that the bull market in the stock market has ended. Indeed, the balance of the data suggests we aren’t likely to see a recession in the U.S. until late 2018 at the earliest. Let me explain further.
As it stands, everything is in place for a serious stock market correction; the question is when. With markets in record territory and momentum strong, the next crash may not be around the corner but, with valuations getting further and further out of whack, stocks will have further to fall when a crash comes.
I do realise that bearers of bad news are unpopular figures. If they are right, nobody will thank them and many people will blame them. If they are wrong they will be ridiculed but, as most readers know, I am not here to be a prophet of doom and gloom. No, my purpose is just to tell things as I see them and to warn people about the massive risks that the world is now facing.
The Russell 2000’s true P/E today is higher than it was at either the top of the internet bubble or the 2007 bull market peak. That’s important information in light of the Russell 2000 dropping below its 200-day moving average. Rather than providing a floor underneath the index, its true valuation will be exerting a force towards even more declines.
This article describes what led up to the stock market crash of 1929 and the ensuing Great Depression and the market similarities today.
One of the world’s most powerful supercomputers, retrofitted for trading the stock market, appears to be betting on a crash in the months ahead.
We see a run to the 1929-esque peak of 2,800 for the S&P 500 as a possibility and a bubble of that magnitude would likely be followed by a Newtonian reaction and we could see a crash that would lead to the scenario we outlined above…
Momentum is one of the most misunderstood concepts in the investment world but few people grasp how much it impacts the markets – in both directions.
The U.S. stock market today has never been more dangerous and overvalued, according to respected Wall Street market analyst John Hussman and, as such, it is prudent to reduce allocations to stocks and bonds and increase allocations to physical gold.
What you need to know is that current stock market valuations are not sustainable and that a great crash is coming. It may not happen next week or next month, but it is going to happen, and when it does happen, it is likely to make what happened in 2008 look like a Sunday picnic.
Look, I am not making this up, I am not dreaming up these patterns, I did not invent technical analysis. These are highly reliable, time-tested, documented patterns expressing the future for stock prices by the market itself.
Throughout U.S. history, every giant financial bubble has always ended very badly, and this time around will not be any exception. Trump may get the blame for it when it bursts, but the truth is that the conditions for the coming crisis have been building for a very, very long time.
John Hussman believes the markets are so overvalued now that we can expect a 60% decline from here…[and in his original article he] presents a total of seven charts to make a compelling case.
I honestly believe that those who read this article in full will understand the horrible predicament we are facing better than 99% of the population!
ON the FENCE
The stock market does not turn on a dime… at least historically that’s been the case. There was always a distinctive topping process going on before the bear finally struck. In every case you can look back and detect the same pattern: a marked deterioration of market internals and of interest rate based indicators before any crash so, if history is our guide, we should not expect this time to be different. So, what should we look for?
munKNEE should be in everybody’s inbox and MONEY in everybody’s wallet!
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