Tag Archives: stock market correction

...Today’s infographic comes to us from Fisher Investments, and it describes the anatomy of market corrections, while also visualizing much of the data around these common events....

I know, I know, no one likes the bearer of bad news — especially when it comes to stock prices - but someone needs to remind you what usually happens to stocks when the Fed raises rates so it might as well be me. They drop. Let me explain.

When a market hiccup grows into a major meltdown, new investment opportunities always become abundant. Below is a list of 10 things to think about doing - or to avoid doing - during corrections of any magnitude:

Margin debt right now is sending a very clear signal that investors have recently become very greedy suggesting that a new bear market is likely underway which could culminate in a decline of at least 20% in the S&P 500 and, because of the sheer size of the potential forced supply that could come to market in this sort of environment, could easily be just the beginning.

In this article I don't predict a hard date or magnitude of the next market crash but merely point out that there are several catalysts that could easily lead to a large market crash in 2016.

China’s slowdown in its GDP growth rate will definitely lead to a global meltdown. Here's why supported by a number of charts and some well reasoned rationale.

The A/D-line has entered critical territory that deserves close examination and a close watch in the ensuing trading days. Here's what the A/D -line is showing for the S&P 500 today and suggesting is quite possible for the markets tomorrow.

With the market richly priced, forward returns just don’t look good enough. Worth the risk? I think it’s better to have a game plan in place that enables you to capitalize on the next major market correction – which in my opinion could be in the -40% to -60% range.

Stock markets around the world have been on an extended bull run for a long time now and 2 new charts, from Deutsche Bank and Bank of America Merrill Lynch, show that shares are in too-good-to-be-true territory and that, if history is anything to go by, they're due for a sharp correction.

Even though the fact that we are in the midst of an absolutely insane financial bubble should be glaringly obvious to anyone with half a brain, the above referred to skeptics have convinced themselves that the current state of affairs can persist indefinitely. Sadly, it looks like what is about to hit us in 2015 is going to serve as a very rude wake up call for them and for the millions of other Americans that currently have their heads in the sand.