Stock Indices

Treasury Secretary, ex-Goldman Sachs banker Steven Mnuchin, has threatened Congress with [a] stock crash if Congress doesn’t pass a tax reform Bill. His reason is that the stock market surge since the election was based on the hopes of a big tax cut. This reminds me of 2008.

If wealth preservation investors get out of their stocks and buy silver, they are likely to avoid the most massive wealth destruction in the next few years. Let me explain.

While earnings growth over the next year are likely to decelerate, momentum in the global economy is supportive of continued solid growth. Improving investor sentiment, in the form of the ongoing rally, appears to be justified. Will it continue in the year ahead?

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.