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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.
The following articles have been compiled from the archives of www.munKNEE.com (Your Key to Making Money!). Read them and you will have a broad diverse view of the many reasons why many analysts take issue with all the market hype out there these days.
1. Stock Market & Economy Could Be in BIG Trouble By End of October – Here’s Why
I generally shy away from making time-specific economic and stock market predictions simply because odds are very low you’ll be correct on both the prediction and the timing. However, there are certain times when the environment is conducive for a prediction that comes along with an expiration date. Today is one of those times. Read More »
2. Bernanke Has Created the Mother of ALL Stock Market Bubbles – Here’s Why
We have NEVER been this overextended above this line at any point in the last 20 years. Indeed, if you compare where the S&P 500 is relative to this line, we’re even MORE overbought that we were going into the 2007 peak at the top of the housing bubble. 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 »
Over the past 6 years, when the yield on high yield bonds (junk bonds) broke above resistance of bullish falling wedges, the S&P 500 ended up declining between 17% & 50%. Will it be different this time? Read More »
5. S&P 500′s PEG Ratio Suggests Overvaluation & Coming Correction
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
7. 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
8. 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
9. 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
10. 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 9 times as many shares as they are buying right now. 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
12. 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 »
