In his latest post on Marketwatch entitled "10 signs your stocks are about to tumble", author and columnist Jeff Reeves paints grim picture on what he believes is to come in the market.
Lately in the news, all the problems seem to be brewing abroad while the domestic signs of a impending bear market and potential recession are staring us in the face.
To summarize a few of his points:
The market is over-bought. Cash in investors accounts is hitting dangerous lows, and the current rally in the market is thought by many to be unsustainable. He goes into interesting detail about the "wedge" that prices have been showing. What this means is that momentum is slowing, and there looks to be no catalysts to propel it further. In fact, foreign troubles alone are causing a great amount of skepticism in the market.
He goes further to describe some more macroeconomic issues that we are all too familiar with such as high gas prices and unemployment. Overall a very interesting read and has lead me again to recommend getting out of equities.
If there are any who disagree with his prognosis, I would be very interested to hear about your views and maybe even why you think the market can still rise.
10 signs your stocks are about to tumble
1 comment:
I don't know that I can find this in economic theory right now, but my personal lean is that a large contributor to the possibility of the bear market is the discussion about the coming of a bear market. I would rather see writers publish more optimistic articles rather than looking for angles to write virally. Falling security prices are not clear indicators of a bear market, but perpetuating that belief is.
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