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Wednesday, July 02, 2014

Sorry, But It's Time To Remind You About The Possibility Of A Stock Market Crash

The stock market has had another good year so far.

Despite concerns about high prices (from people like me), stocks have meandered higher over the past 6 months. And they are now, once again, setting new all-time highs.

That's good for me, because I own stocks. But I'm not expecting this performance to continue.

In fact, the higher stocks move, the more concerned I get about a day (or days) of reckoning. Why? Because the higher stocks move, the farther their prices get farther away from the long-term average. This doesn't mean the market will crash anytime soon — or ever. But it does mean that, unless it's "different this time," stocks are likely to perform very poorly from this level over the next 7-10 years.

And it's not just price that concerns me.

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3 comments:

Anonymous said...

2 years ago I made a small fortune in the stock market.The problem was that I started with a large fortune.

Anonymous said...

thanks for the "reminder". it's not far away.

Anonymous said...

smoke & mirrors - didn't Shotgun Joe recently say he owns no stocks?