11/28/2014 – A flat day with the Dow Jones up 0 points (+0.00%) and the Nasdaq up 4 points (+0.09%)
While most people believe we are in the early stages of a secular bull market, I strongly disagree. In fact, if I had to describe today’s stock market in 2 statements and/or charts it would be……..
Grossly Overvalued: By most historic measures. As described two days ago, today’s valuation levels are now above 2007 levels. With only 2000 blow off top being higher. Yet, I would argue that such a view is not entirely accurate either. It does not account for massive amounts of credit that are in our financial system. If this factor is accounted for, I believe it would push today’s market above 2000 valuation levels. Making it the most overvalued market EVER.
Highly Speculative Powder Keg Ready To Explode: As the chart below suggests, everyone is long, fully committed and on margin. With the margin interest being 35% higher than at 2000 and 2007 tops, it is just a matter of time before a typical sell off turns into a massive bear market or worse…..an all out crash.
In Conclusion: Investors and central bankers often complain that it is impossible to spot bubbles and/or anticipate bear markets. If you can’t spot today’s bubble after looking at the charts above, well, I am afraid your head is firmly planted up your **s. Make no mistake, this will end in crocodile tears, just as it did after 2000 and 2007 tops.
This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2014-2017. In fact, when it starts it will very quickly retrace most of the gains accrued over the last few years. If you would be interested in learning when the bear market of 2014-2017 will start (to the day) and its internal composition, please CLICK HERE
(***Please Note: Due to my obligations to my Subscribers I am unable to provide you with more exact forecasts. In fact, I am being “Wishy Washy” at best with my FREE daily updates here. If you would be interested in exact forecasts, dates, times and precise daily coverage, please Click Here). Daily Stock Market Update. November 28th, 2014 InvestWithAlex.com
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