Impending Doom for Stocks

Junk Bond Spreads Diverge Further From Stocks One of the stock market’s important warning signs is getting louder. Junk bond spreads and equities usually move together. When they don’t, it’s worth paying attention. Check out this excerpt from Elliott Wave International’s August 19 Short Term Update. “[This chart] shows updated prices for both the S&P… Read more Impending Doom for Stocks

How did we get here?

If the Federal Reserve Board is So Smart, I’d Hate to See What Dumb Looks Like! The federal government is now spending about $1.25 trillion a year just to pay interest on the $40 trillion national debt. There are of course the usual suspects: profligate spending, bureaucracy, lack of accountability, waste. How did we get… Read more How did we get here?

This time is different?

Everyone says, “This time is different.” That’s exactly what investors believed in 2000. One of the most interesting charts I’ve seen compares speculative growth stocks to conservative utility stocks. Today, that ratio sits near 27x — almost double the level reached during the dot-com peak. History doesn’t guarantee the same outcome, but it’s hard to… Read more This time is different?

At the Peak

Market warning signs are popping up everywhere! Here’s another one that you can share with your audience. The chart below, Market Vane’s Bullish Consensus data, which tracks the buy and sell recommendations by analysts and commodity trading advisors. The current reading of 70 was exceeded only twice since 2010. December 2024 & January 2018 – both ahead of market peaks.… Read more At the Peak