Stock Indices

The long-term trend in the S&P 500 is up and nothing over the past 6-weeks has changed that trend!

There is an extreme amount of leverage in the markets and, while this leverage may increase for a while, at some point the insanity will end in one heck of a market correction-crash.

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.

Is the bull market about to come to an end? If last year ends up being the top of this bull market, what does history say could happen to stocks this year?

...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.

Based on strong fundamentals and positive vital metrics, the following 4 medical devices industry stocks have ample credential to return more to shareholders amid eco-political threats.

Comparing the Trump and Kennedy rallies—as in the first chart below—I expect Trump’s market to build an even bigger slide.

As the next crisis erupts, the mainstream media is going to respond with shock and horror but the only real surprise is that this ridiculous bubble lasted for as long as it did. The truth is that a market decline is way overdue.

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.

Mark my words here: This third and final bubble (fourth if you count 1987) is now the biggest and most obvious bubble in this boom since 1983. It is as overvalued as at the top of 1929 and the fact that no one wants to hear about it is an ominous sign that it may well be peaking!