After meandering higher for most of the year, the stock market is now sputtering.
That's triggering chatter about a minor "correction," which many people believe is long overdue.
And maybe that's what we're at the start of, a minor correction. Or maybe this is just a blip, and the brilliant and prudent Jeremy Grantham is right that we're on the cusp of a new bubble that will take the S&P 500 up another 10% to 15% over the next year to 2,250. (As a stockholder, I sure hope so!) Or maybe we'll get both — a minor correction and a new bubble spike. Or maybe we're just in the middle years of a fantastic bull market.
I don't know. (Neither does anyone else, by the way.) I'm also not predicting a crash.
One thing I do know, though, is that stocks are extremely expensive on every valid historical measure I know of. In the past, this level of overvaluation has presaged poor long-term returns. So I'm not expecting my retirement account to do well from this level over the next seven to 10 years.
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Who the hell can afford to buy stocks ? Having said that , who gives a crap?
ReplyDeleteThere are a couple of ETFs out there that one can make mega-bux with during a large stock market drop.
ReplyDeleteBut beware! One can lose their $$$ just as easily if one obtains them on the wrong side of the curve ...
That flashing cat is cool daddio!
ReplyDeletePlenty of people know what is going to happen. The market manipulation has been exposed even by the Main Stream Media. Libor, Gold Fix, Silver Fix, it goes on and on.
ReplyDeleteThe controllers know, and you can bet they will benefit tremendously with both the next crash and the next bubble.