11/26/2014 – An up day with the Dow Jones up 12 points (+0.07%) and the Nasdaq up 29 points (+0.61%). 

Over the last year or so I have been whining that there is nothing to invest in. Not to speculate in, but to invest in over the long-term. That everything is extremely speculative and that most stocks are selling at exuberant valuation levels. It’s nice to see that Warren Buffett’s tends to agree.

Warren Buffett’s ‘Single Best Measure’ Of Stock Market Value Hasn’t Been This High Since The Dotcom Bubble

If you are serious about investing I highly encourage you to read the article above in full. Here is the bottom line. Today’s valuation metrics are extreme and as the chart above suggests we are now approaching 2000 bubble levels. Not a good sign as we all know what happened thereafter.

Yet, there is one primary difference between today’s valuation levels and the year 2000. The blow off top in 2000 was, more or less, driven by sound underlying economics, credit policies and wild speculation.  Today’s valuation levels are driven by the same wild speculative factors plus massive credit infusion and no sound economic principals.

Yes, the corporate earnings are fairly good, but it goes without saying that most of such earnings have been driven by massive credit infusion, QE and buybacks. That is to say, take the FED stimulus away and we might find ourselves in the most expensive/speculative market EVER.

Make no mistake, this is not going to end well.  

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 26th, 2014 InvestWithAlex.com 

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Warren Buffett: Valuations Are Now At 2000/2007 Blow Off Levels Google

11/25/2014 -A positive day with the Dow Jones up 2 points (+0.01%) and the Nasdaq up 3 points (+0.07%). 

Something doesn’t smell right. I am talking about a massive divergence between the stock market and the bond market. The stock market is sitting at an all time high and according to most market pundits, this economic miracle is just getting going.

Yet, the bond market is predicting a massive recession. The yield curve continues to compress and the 10-Year note is once again below 2.3%. This can only mean two things. Either the stock market is right and the yields will snap back (what most people are anticipating) – OR- the stock market is in a massive bubble that is about to blow up. I don’t know about you, but my money is on the bond market.

Plus…. consider the following. 

• The stock market is incredibly overpriced. By most valuation metrics. With some valuations pushing 2007 and 2000 (nasdaq) tops.
• The 5 year bull market cycle is now over.
• We are still in a 17 year secular bear market that started in 2000. The last 2-3 years are always down.
• There are no bears left. Everyone has capitulated.
• Bulls see every 5-10% correction as a buying opportunity of a lifetime.
• The FED is tightening and any remaining QE velocity is collapsing.
• Massive divergences. Particularly with the bond market.
• Smart investors like Icahn, Soros, Faber, Rogers are shorting this market.
• Etc….I can list another 20 points, but you get the idea.

Still think the Dow is going much higher in 2015? Yeah……good luck with that.

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 25th, 2014 InvestWithAlex.com 

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Bonds Vs. Stocks…….Who Is Right?  Google

11/24/2014 – A positive day with the Dow Jones up 7 points (+0.04%) and the Nasdaq up 42 points (+0.89%)

As far as most people and financial professionals are concerned 2014 is a done deal.  The gains are in the bag and the fiscal 2015 should be at least just as profitable. Yet, with the S&P already approaching its Goldman Sachs’s 2015 target of 2,100 one important question remains.

Is everyone celebrating too early? 

After all, we have about 25 trading days left in the year and it would take the Dow half this long to fall below its year open or worse, to test its October lows. Impossible? Nothing is impossible when it comes to financial markets. And even thought Decembers are typically net favorable, there are no rules to prevent a substantial decline here.

Particularly, when you take today’s extreme overvaluation and bullish sentiment levels into consideration. That is to say, no one should consider this year over until the closing bell rings on December 31st.

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 24th, 2014 InvestWithAlex.com

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Too Soon To Celebrate? Google

11/21/2014 – An up day with the Dow Jones up 89 points (+0.50%) and the Nasdaq up 11 points (+0.24%).

We live in interesting financial/investment times. I’ll bet you my left kidney, actually no, make that both of my kidneys, that just 10 years ago a surprise rate cut or QE by either China/Japan/EU/US would not have been viewed as a positive development. On the contrary, it would have been viewed as a terrible economic development that would warrant a massive sell-off as opposed to a rally we saw today.

Welcome to the twilight investment world where central banks can simply print their way to prosperity and where the bad news is viewed as “great” news.  But as we all know, that only works until the markets decide to collapse from their bubble valuation and excessive speculation levels. It is never different.

How close are we to that juncture? Consider a small sample of today’s media reports……..

• Dow 20,000 and how we’ll get there
• Here’s how Apple gets to $1 trillion
• Don’t get carried away by rising stocks

That is to say, today’s market conditions are about as bullish as they can get. There are no bears left and everyone expects this market to go up. Yet, when stocks are selling at incredible valuations levels (reminiscent of 2000 and 2007 tops) and when people start forecasting outlandish metrics, typically, the top is not that far behind.

I will leave you this week with a quote from non other than Warren Buffett as the time to be fearful might be at hand…..“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful”. 

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 21st, 2014 InvestWithAlex.com

Did you enjoy this article? If so, please share our blog with your friends as we try to get traction. Gratitude!!!

Welcome To Investment La-La Land Google