12/5/2014 – A positive day with the Dow Jones up 58 points (+0.33%) and the Nasdaq up 11 points (0.24%).
A fairly good interview with Nouriel Roubini and I encourage you to take a look. As yours truly, Mr. Roubin believes that we are in a massive bubble. And while I agree with most of his views, one thing rubs me the wrong way. According to Nouriel, while we are in a massive bubble, it will not burst until 2016. Why 2016? Well, no real reason was provided and we might as well claim that this bubble will only burst in the year 2158 or tomorrow. Regardless, it is a good overall look at where we are today.
In the meantime, the yield curve continues to compress. Over the last few decades the yield curve has proven to be one of the best indicators of where we are headed. It is now signalling that a severe recession is just around the corner. And while the yield curve is a poor timing indicator, it works well when we combine it with today’s valuation levels. That is to say, when the yield curve is compressing and you find stocks at historically high/extreme valuation levels, as they are today, it safe to assume that the market is topping out.
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. December 5th, 2014 InvestWithAlex.com
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