Large numbers of people believe that an economic crash is coming next year based on a 7-year cycle of economic crashes that goes all the way back to the Great Depression. Such a premise is very controversial - some of you will love it, and some of you will think that it is utter rubbish - so I just present the bare bone facts below for you decide for yourself if it is something to seriously consider protecting yourself from in 2015.
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Confirmed Hindenburg Omen Says 23.5% Probability of -15%+ Stock Market Crash; 61.7% Chance of +5% Decline (+3K Views)
No stock market crash (a decline greater than 15%) has occurred over the past 30 years without the presence of a Hindenburg Omen except on one occasion (the mini-crash of July/August 2011). As such, without an official confirmed Hindenburg Omen, we are pretty safe from experiencing a major stock market correction. On the other hand, if we have an official Hindenburg Omen, then a critical set of market conditions necessary for a stock market crash exists. As of September 19th, 2014, we have such a condition in the market...
Read More »“Is the Stock Market Sitting On A Trap Door?” These 2 Indicators Say “Yes”
The Russell 3000, a broad equity index representing 98% of the investable U.S. stock market, is up 9.3% for 2014 on a total-return basis...[but] the median total return for Russell 3000 constituents is just 1.5% reflecting the fact that small- and mid-cap stocks are under-performing... This current alarming deterioration in breadth, a term that refers to how much of the market is participating in the advance, begs the question: "Is the stock market sitting on a trap door?" This article looks at 2 trap door indicators that suggest that that might, indeed, be the case.
Read More »Another 35% Crash In the Stock Market Would Not Be That Unusual – Here’s Why
Some witless pollyannas will say the title of this article is inappropriate. Unfortunately, these hapless souls suffer from excessive greed, rampant euphoria and hyper-complacency. Furthermore, they are ignorant of stock market history and its immutable cycles where only magnitude and duration vary. They foolishly delude themselves into believing that the US Fed has “banned” bear markets and has discovered the “magic elixir” to kill all potential bears while they are still cubs or in hibernation.
Read More »How Will the Markets Perform For the Balance of 2014?
The S&P 500 just extended its winning streak to seven straight quarters, and it's reasonable to wonder just how long it can continue...[That being said, however,] investors often enjoy a strong wind at their back in the fourth quarter, based on seasonal patterns and stock market history. Will 2014 be different [or will, as history suggests,] investors find a shiny new quarter during the next three months? [This article looks at these patterns to come to a better understanding of how the markets likely will perform for the balance of 2014.]
Read More »How Favorable Are Conditions For Stock Market? You’ll Be Surprised
Our "Barnyard" analysis from a year ago resulted in 6 out of 8 points indicating that the market would be favorable over the next 6-18 months. That has come true, with the S&P 500 up nearly 20% since then. We expect many will be surprised by the latest Barnyard Forecast which we present below.
Read More »What Are the Most Important Stock Market Drivers Forecasting?
In our view, the four primary drivers of market valuations are earnings, dividends, interest rates and inflation, of which two stand out above the others as being the most important. We look at each factor and then conclude with what it means for stocks.
Read More »Take Note Because Those Investors Who Ignore These Observations Do So At Their Great Peril
Is a major top at hand? It is often said that bells do not ring to signal the end of a bull market but if the broad averages were in fact to plummet in the weeks ahead, never forget that bells did indeed ring. This article contains the opinions of three heavyweights in the guru world which are so insightful that any investors who ignore their observations do so at their great peril.
Read More »Today’s Financial Entertainment: What Irrational Market Heights Mean For Gold
The ultra-wealthy are able to stay ultra-wealthy for a reason, and they are usually a step or two ahead of most of the rest of us, so do they know something that we don't? Yes, like any rational person should be able to see, they realize this financial bubble is going to end very, very badly and are making moves to protect themselves from the inevitable chaos that is coming.
Read More »This Weekend’s Financial Entertainment: “A Stock Market Crash IS Coming!” (+2K Views)
Our financial system is in far worse shape than it was just prior to the financial crash of 2008. The truth is that we are right on schedule for the next great financial crash. You can choose to ignore the warnings if you would like but, ultimately, time will reveal who was right and who was wrong and, unfortunately, I think I will be proven to have been right.
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