This Party Is Just Getting Started. Stock Market Valuations Can Go Infinite

Daily Chart AMarch 23rd

3/23/2015 – A down day with the Dow Jones down 11 points (-0.06%) and the Nasdaq down 15 points (-0.31%)

According to quite a few market pundits, the party in the equity markets hasn’t even started yet. Case and point

I cannot stop shaking my head in disbelief. To save you some time, here is what was said:

“This is an extraordinary buying opportunity, buy any and all dips, with zero interest rates the price of equities could be infinite, this bull market will continue, valuation don’t matter anymore, etc….”

Valuations don’t matter……infinite run ups are just around the corner …..buy now. That sounds familiar. If I didn’t hear the exact same thing at 2007 and 2000 tops, well, call me a fool.

Again, the underlying assumption in both cases is the same. We are in such a unique monetary easing environment that there is no way in hell the markets can go down. Maybe so, but here is the major point that most investors miss. Today’s market environment becomes a matter of psychological setup as opposed to a fundamental background.

When everyone and their day trading grandmother believe that we are in such a bullish environment, the market is getting ready to reverse. Why? Well, it’s rather simple, everyone has already bought into the long side of the market. Contrary to the opinion of the market pundits above, I would argue that the only opportunity here is on the short side (or in cash).

This conclusion is further supported by my mathematical and timing work. It clearly shows a severe bear market between 2015-2017. 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 2015-2017 will start (to the day) and its internal composition, please CLICK HERE.

(***Please Note: A bear market might have started already, I am simply not disclosing this information. 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. March 23rd, 2015 InvestWithAlex.com

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