Thursday , 28 March 2024

Stock Indices

A Stock Market Crash Followed This Occurrence In 1929, 2000 & 2007 – It’s Happening Again! (+3K Views)

What do 1929, 2000 and 2007 all have in common? Those were all years in which we saw a dramatic spike in margin debt. In all three instances, investors became highly leveraged in order to "take advantage" of a soaring stock market but, of course, we all know what happened each time. The spike in margin debt was rapidly followed by a horrifying stock market crash. Well guess what? It is happening again.

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S&P 500 Likely to Drop Further – Here’s Why (+2K Views)

I believe this sell-off is a good thing for the market - as the outcome will show us where fair value might be. I believe that we will see the market return to a more reasonable forward P/E of 13, sending SPY to $150.00 - or another 5 percent decline. [Let me explain further.]

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U.S. Financial Markets, Addicted to Smack (Easy Money), Are Expressing Fear of Eventual Withdrawal (of Juice) +2K Views

Just the mere suggestion that this round of quantitative easing will eventually end if the economy improves is enough to severely rattle Wall Street. U.S. financial markets have become completely and totally addicted to easy money, and nobody is quite sure what is going to happen when the Fed takes the "smack" away. When that day comes, will the largest bond bubble in the history of the world burst? Will interest rates rise dramatically? Will it throw the U.S. economy into another deep recession? Can the Fed fix this mess without it totally blowing up?

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Japan’s Nikkei Index Levels: Past, Present & Likely Future

The Tokyo Nikkei Average rose +82% in just six months in a parabolic move that was doomed from the start. They almost always are. When a parabolic move breaks, as it did in May, the speed of the decline can be catastrophic and has fallen 22% to date. The downside expectation is for prices to return to the level of the basing pattern that preceded it. In this case between 8300 to 9100. That is not a prediction, just the level we at which we might expect to start looking for a tradable bottom.

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