Financial Markets at Critical Juncture – Could a Crash Eventually Happen?
There are a lot of bears out there touting that this pullback in the conventional markets is more than just a correction. These bears refer to many statistics to drive home the point that these elevated markets can not sustain the increases we have grown accustomed to. While I agree that the market will have a much larger correction there is no telling exactly when. As long as the Fed maintains low interest rates and provides the traders with the assurance that it will not let the markets fully correct I fear it still may take a while before a much larger pullback.
The guys over at Acting Man have some great charts to show how the market is at a crucial tipping point. Click here to read the full post.
Please let us know what you think about their assessment.
Interesting comment Dallas!
Very interesting articles about the margin debt bubble about to burst:
http://seekingalpha.com/article/2401605-the-coming-market-crash-and-the-trigger
AND
http://www.advisorperspectives.com/dshort/updates/NYSE-Margin-Debt-and-the-SPX.php
Would absolutely LOVE for y’all to have a discussion about this.
Margin calls = forced selling at any price
Margin debt at near record highs, and this has been the trend before previous crashes.
LOVE LISTENING TO YOUR SHOW.
😉
The crash will eventually happen. It is 100% correct. However, who knows it will happen immediately or after a major melt up. If there is no FED liquidity, the market would not come this far. Unless they want it crash by leaving it alone, it can keep going. The crash may happen at the worst time if the power that be is evil.
“Could a Crash Eventually Happen?”
Of course. There have been crashes all throughout history and this will not change so obviously there will be a crash at some point in the future. It’s not a question of if but when.
There are too many in the financial press looking for a crash for one to happen now. So the market will go up, possibly for even a few years (with corrections along the way).
Mr. Jones? You’ve fallen into the all-too-common trap of “confirmation bias”. Far from “too many” in the financial press looking for a crash, I would content that VERY FEW are looking for one. The “too many” to which you allude are those contributors to, and denizens of, outposts such as this one, the sort you and I and others regularly visit and attend. It’s very dangerous to confuse “the few” with “the many” simply and only because you’ve thrown your lot in with “the few”.
A crash – eventually – is a fait accompli. The question, of course, is “When?” and “What will be the trigger?”. From all appearances, it seems TPTB want to take the S&P to at least that nice round number of 2000, now so tantalisingly close. The market is psychology, the goal is to separate as many sheep from their wool as possible, and nothing does that better than taking some widely-followed index to some “magic number”. And if it’s a “millennial” number, wow, so much the better! Remember the hype of “Dow 1000” back in the early 70’s? I sure do. Then came The Bear of ’73-’74. Ouch. Won’t be any different this time. Except they’ll use the S&P instead of the Dow.