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There are many, many different takes on why the stock market has been ripe for a fall and why it
has finally happened. Below are 30 of the best-of-the-best such analyses to help you come to some sort of resolution.
By Lorimer Wilson, editor of www.munKNEE.com and the free Intelligence Report newsletter (see sample here).
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? Read More »
2. “Eiffel Tower” Patterns Suggest Major Corrections in These 3 Asset Classes
Eiffel tower patterns can be very important to your portfolio construction & management because, when you experience the left side of the tower, you often experience the right side as well which often results in declines of as much as 50% from the peak. Currently it would appear that three specific assets could well be forming such patterns. Read More »
3. A Stock Market Crash Followed This Occurrence In 1929, 2000 & 2007 – It’s Happening Again!
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. Read More »
4. Level of Investor Margin Suggest Its Time to Lower Stock Exposure
5. S&P 500′s PEG Ratio Suggests Overvaluation & Coming Correction
The S&P 500 index is trading at record high levels and optimism remains high with Barron’s professional money manager survey indicating a record 74% money managers being bullish on markets even at current levels. [When one] measures valuations with respect to expected growth, [however, the ensuing ratio, the PEG ratio,] suggests overvaluation at these levels. [Let me explain further.] Words: 254; Charts: 1 Read More »
6. Stock Market Crash Coming, Then More QE & Then Commodity Price Spikes
Unknowingly, with QE Infinity, Bernanke has put in motion a runaway move in the stock market that will end in some kind of crash this summer. The crash will cause Bernanke to double down on QE which will trigger a spike in commodity prices. Let me explain my rationale. Read More »
In the 7 years that the Greedometer has been used there have been zero missed calls, and zero false alarms. The 7th warning began in January and in late February,the Greedometer gauge reached an epic 7900rpm which is marginally higher than the 7700rpm maximum reading seen 3 months prior to the S&P500 peak in October 2007. [This article outlines the development and successes of the Greedometer and the new Mini Greedometer and what they are predicting for the stock market in 2013.] Words: 1420
8. It’s Time to Apply the “Greater Fool Theory” and Sell Your Winners to All Those Fools
The Dow has surpassed its all-time record high – set in October 2007 – and the S&P 500 is not far behind? Is this the early stage of another great bull market? Let’s look back at the two previous times when the S&P 500 set new all-time highs and see if we can learn something. Wait…first put your “this time it’s different” glasses on. OK, let’s go. Words: 430; Charts: 1
9. Don’t Ignore This Fact: “Greedometer Gauge” Signals S&P 500 Drop to the 500s by July-August, 2013!
The S&P500 is likely to achieve a secular (long term) peak this month, then drop to the 500s by July-August 2013. This article explains why. Words: 180
10. This Metric Strongly Suggests a Major Correction in the S&P 500 Could Be Coming
History shows that when investors experience a rapid decline in the amount of available cash in their brokerage account to spend/invest quickly such “negative net worth” leads to major corrections in the stock market. Currently such is the case so can we expect another such decline or will it be different this time?
11. I’m “making the call” for a market correction of 50% – or more!!
I don’t relish the job of constantly pointing out the risks to the equity markets but since few on Wall Street seem willing (or able) to do this, I’m “making the call” for a market correction, as enough variables have aligned to indicate a high likelihood of stocks heading downwards from here. Words: 1203; Charts: 6
12. Watch Out For Falling Stocks! Here’s Why
The stock markets make no sense. They have literally lost touch with reality. Divergences between fundamentals, confidence and the valuation of markets are large [and, as such,] cannot last for long….The only question is how…and how quickly….this correction occurs. Words: 261
13. You Need to Stay in the Stock Market Despite an Impending Economic Collapse – Here’s Why
You need to stay in markets despite an impending economic collapse. [Really?! Yes, really.] Normally such an expectation would be addressed by getting out of the way of the oncoming disaster and taking ones chips off the table [but,] in this situation, there is no place to hide. Low-risk assets, like bonds and near-cash, produce little to no return…and the threat of rising interest rates and inflation make them dangerous. Higher risk assets are unavoidable, given current conditions. [Let me explain further.] Words: 830
14. You Can Insure Your Portfolio From Potential Capital Loss – Here’s How
Most everything you’ve heard about investing from the mainstream media, your mutual fund advisor and your tax accountant is a lie. You’ve been told…that the entire point of portfolio diversification is to mitigate downside risk yet when the market experiences the inevitable decline, every sector pushes significantly lower – and your “diversified” portfolio suffers as a result, [right? Well, there IS a better way.] Hear me out. Words: 895
15. The U.S. Stock Market Is Overvalued By More Than 50%! Here’s Why
Key stock indices are becoming significantly overpriced. The value of the U.S. stock market stands at about 133% of GDP. The average for the past 60 years has been around 82%. By this measure, the U.S. stock market is overvalued by more than 50%! Words: 398
16. Stop! Don’t Forget Market Risk – Remember What Happened in 2000 & 2007/8.
Investors are more bullish now than at any time since 2002 but the current rally has not been fueled by improved prospects of actual growth and wealth creation. Instead, it’s mostly due to:
- investors desperate for income denied them elsewhere by central bank policies;
- printed stimulus cash seeking a home and
- sheer technical momentum
but nowhere do they seem to be considering market risk – the risk that your investment will lose value because it gets dragged down in a falling market. Words: 615
17. Insider Trading Suggests That a Market Crash Is Coming
What you are about to read below is startling. •Every time that the market has fallen in recent years, insiders have been able to get out ahead of time… •[What] is so alarming [this time round is] that corporate insiders are selling nine times as many shares as they are buying right now. •In addition, some extraordinarily large bets have just been made that will only pay off if the financial markets in the U.S. crash by the end of April. •So what does all of this mean? [Could it be that they] have insider knowledge that a market crash is coming? Evaluate the evidence below and decide for yourself. Words: 570
At some point we are going to see another wave of panic hit the financial markets like we saw back in 2008. The false stock market bubble will burst, major banks will fail and the financial system will implode. It could unfold something like this: Words: 660
19. Ignore Wall Street Cheerleaders: Market Technicals, Fundamentals & Other Info Says Otherwise!
[In spite of what] the typical Wall Street cheerleaders, I mean strategists, are predicting, we see the equity market ever more closer to its cyclical top, miners about to retest a major bottom and hard assets with a new catalyst. [This article analyzes 9 pieces of information, complete with charts, that show what is actually going on in the marketplace at this point in time and what the short-term future holds.] Words: 930; Charts: 820. 5 Sound Reasons Investors Would Be Better Off On the Sidelines Than In the Market
New year festivities have continued on the stock market even as the Christmas trees have been put away. The “death of the fiscal cliff,” not horrible job numbers and supportive comments from Mario Draghi on the other side of the pond have led to bold and bullish behaviors over the last three weeks. While no one can predict the exact peak, here are five reasons you’re better off on the sidelines than in the market.
21. These Charts Suggest a Possible +/-60% Decline in the S&P 500 by 2014
Many signs point to a plunge for the Dow Jones Industrial Average and major indexes rather than a continued climb. If history is ever a good indicator of forthcoming events, it is absolutely imperative that we pay attentions to these signs, and prepare for the worst. Here are a few reasons why the Major U.S stock indexes could see declines in the coming months. Read More »
26. What Are the “Titanic Syndrome” & “Hindenburg Omen”? What Are They Now Saying?
There are two market warning signs which have just recently been triggered and which have gotten a lot of press attention due to their catchy names – the Titanic Syndrome and the Hindenburg Omen – both of which are giving a “preliminary sell signal” based on analyses of 52-week New Lows (NL) in relation to New Highs (NH) on the NYSE within a specific period of time. Read More »
27. These 5 Leading Investment Indicators Suggest the Stock Market Is OVERvalued – Take a Look
We have been in the throes of a secular bear market, subject to strong cyclical swings in either direction, since 2000. Currently, based on the 5 leading investment indicators analyzed in this article, the measures all confirm that, from a longer-term perspective, the market remains overvalued. Let’s take a look at each to see why that is the case. Read More »
28. Stock Market Will Crash By Late June or Early July! Here’s Why
The euphoria phase of the bull market that I warned about months ago is now beginning its final parabolic phase. I’m guessing we still have another 1 to 1.5 months before this runaway move finally ends. Read More »
29. History Suggests Dow Has Only 4% More To Go Before Correcting
30. Latest Stock Valuation Table Says What About U.S. Market Levels?
The GNP numbers came out this week for the first quarter of 2013 and there was 1.8% growth yoy to $16.236 trillion…What does this mean to your equity positioning? Read More »