Henry Blodget calls for stock market crash again. Good work Henry. I really love the charts but we all know a broken clock is right twice a day. As for market crashing, I think the warm up signs are pretty similar. Large swings up and down, dramatic pick up in volatility. Think summer of 1987, tech bubble of 2000 and oil price gyrations in 2008 all augured for big price moves. We are not quite there but I do expect some black swans paddling by. My hunch is a collapse in social media stocks, China banking meltdown, or Israeli preemptive strike on the nuclear reactor installations in Iran will trigger a run on stocks. How do you plan for that? Try deep in the money puts a couple of year out on social media stocks. But wait for a crack before you strike, then move quick.
The stock market continues to set new highs, which is exciting and fun for those of us who own stocks.
I own stocks, so I’m certainly enjoying it.
I hope stocks continue to charge higher through 2014, but I can’t find much data to suggest that they will. I only have a vague hope that the Fed will continue to pump air into the balloon, the U.S. economy will finally start cranking again, and corporations will continue to find ways to cut more costs and grow their already record-high profit margins and earnings.
Meanwhile, every valid valuation measure I look at suggests that stocks are at least 40% overvalued.
via I Won’t Be Surprised If Stocks Crash Next Year (And You Shouldn’t Be, Either!) | Business Insider.