Posted on 02/27/2013 6:27:54 AM PST by blam
THE NEXT STOCK MARKET CRASH: Why Many Pros Think It Has Already Begun
Sam Ro
February 27, 2013
Stocks are near all-time highs. And there are plenty of reasons to be terrified...
After coming within points of an all-time high, stocks have begun to stumble, and volatility appears to be returning to the markets.
This has led some market pros to declare that an amazing four-year rally in stocks is over and that we're on the precipice of a new crash.
And there is certainly no shortage of logic to support that view.
Massive U.S. federal budget cuts are looming, political instability in Europe is returning, and currency values around the world are falling.
And by many measures, U.S. stocks look due for a comeuppance. Valuations are elevated, profit margins are at all-time highs, and there are signs of investor complacency everywhere.
Of course, not everyone thinks stocks are headed for a crash. In fact, some experts think we're at the beginning of a new long-term bull market and that investors should go "all-in." But we'll focus on those folks later.
For now... (Click to the site for numerous charts)
(snip)
(Excerpt) Read more at businessinsider.com ...
I see it this way: Either it will break through the barrier, fueled by inflation, or it will crash again.
You can bank on it! ;-)
LOL, for the pros out there. Hype the results so one can get in or out. Keep an eye on the “short” volume. I’ve always wondered about front runners sreaming, “Extra, Extra.. read all about it”
“The dow rise to 20,000 is inevitablle”
Well it is. But over what time horizon?
Former Fox News guest Gerald Celene kept saying the economy would crash very five minutes. The problem was he kept trying to put a date on things. And that is why he was let go, nothing occurred when he predicted. His Trends Research company was too inaccurate. So while it will happen, I wouldn’t put dates on things.
So many have scales on their eyes.
I would also say the crash will be slow and not as immediate as some people think. Therefore, nobody is sure how it will go. The SHTF Plan site has a bunch of scenarios they post on YouTube videos. It will take me some time to find the links as it was last summer.
I agree....when?
Well, in the sense that if you buy today at Dow 14K and sell in 25 years at Dow 100K, this is probably true. If you find yourself in a financial position where you are forced to sell in 2017 at Dow 5K, you might have a very different opinion...
Having said that I highly doubt if the "three steps and a stumble" rule will apply this next time. Once the Fed starts it will probably be ugly FAST.
market manipulation yes, but not pure market manipulation. They have other objectives, that they believe will be fostered by pursuing this policy for a while longer, and that they think they can end without destroying the world again.
Are they right? I am agnostic to skeptical, and (pretty uncomfortably heavily in cash)
I have been hearing this for over three years. My portfolio is up 32% in that time. Maybe I will listen to the doomsayers this year maybe not. When you are well prepped you can afford to take some risks.
May have already begun, but as we have seen an uncountable number of times in the past couple of years, stocks and markets can remain high (i.e. are deliberately kept high) far longer than any economic laws can explain. Bears could be calling every day a top well into May.
Good for another 500+ on the DOW.
Well don’t be preaching your tee-totaling to us market watchers here in CA where the stock markets open at 6:30. :-)
If you’re playing with “house money”, why not?
The only problem would be a “bank holiday” where they don’t allow you to sell, they just close the market.
So, it is either going up or going down.
A bold prediction my friend! :o)
Saw it in a t-shirt - but it’s so ME, I couldn’t resist. :)
I won’t! We all need SOME form of escape from this madness!
huh? Who’s picking up the Fed money, the dumb money or smart money? Pure manipuation from one source, whether calling it juice or sugar coated & there’s plenty of smoke & mirrors going on in the world’s largest casino!
As far as in you being in cash, I get annoyed with the Institutional players (ie Fund Managers) sitting on any amount above 5% cash. Cash makes NO money resting in this market. Unless, you are a senior & have all your money off he table & had your fun transferring wealth.
Hey I’m not telling you to drink, I’m saying I’m two hours ahead of you, especially on days like yesterday. :-)
Nine-hour bear markets, bah.
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