Friday , 7 August 2020

Stock Indices

Take Note: A Bubble Isn’t Necessary To Have A Sharp Decline In Stocks

With valuations stretched, investors seem to be justifying their stock purchases here with the argument that we have yet to reach the mania of 1999-2000 but history has shown us that there doesn't have to be a bubble for there to be a sharp decline in stocks. As we saw in 2007, it doesn't mean there is no risk of a significant market decline or that valuations are compelling and that investors should be expecting above average long-term returns from here. They should not.

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S&P 500 To Correct By 10% Soon Yet End 2015 At Around 2500

A near-term market pullback of as much as 10% is likely but we're still in bull market cycle that has just begun to run. There are years left to go on this secular bull market and, indeed, Benjamin Graham's P/E formula implies a 2015 S&P price target of somewhere around 2476 to 2545.

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It’s Just A Matter Of Time Before the Stock Market Bubble Is Pricked! Here’s Why

Once again the stock market is in full bubble mode. The market was already overvalued earlier this year and the froth continues to build. Valuations are off the chart and euphoria is setting in while, at the same time, you have inflation eroding the purchasing power of regular Americans not participating in this casino. All the signs of a bubble top are there - massive speculation, unexplainable valuations, and blind optimism - even though the fundamentals don’t make any sense. This article substantiates that contention.

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What Does the 10-year Yield’s Death Cross Mean For Stocks?

The 10-year yield’s Death Cross has proven to be a pretty significant risk-off shot across the bow over the last decade and this matters today because the 10-year yield put in a Death Cross back in early April of this year. So what does the 10-Year's Death Cross mean for stocks this time?

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Financial Asset Values Hang In Mid-air Like Wile E. Coyote – Here’s Why

The financial markets are drastically over-capitalizing earnings and over-valuing all asset classes so, as the Fed and its central bank confederates around the world increasingly run out of excuses for extending the radical monetary experiments of the present era, even the gamblers will come to recognize who is really the Wile E Coyote in the piece. Then they will panic.

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