Stock Indices

If the markets crash in 2018 then, like previous crashes, they will prove to be a buying opportunity but, until the masses embrace this bull market, however, the most likely outcome is a correction and not crash.

Many people think that a huge crash is coming within the next 18 months. That being said, there are those who think that we will have a major ‘melt-up’ to 45,000 or 50,000 prior to a historical crash. Personally, I am uncertain which it will be and am waiting to discern what our Central Banks will do! Here's why.

Bulls: All we have been hearing since 2011 is how the stock market is going to crash but bullbear3-2from 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.

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.

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.

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.

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.

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.

There are over 100,000 publicly traded companies in the world to choose from. Luckily, the use of a stock market index can help define a particular market, as well as track its performance in a way that is easy to reference.