Did Alibaba’s IPO signal a top in the stock market?
There are many signs that we could use to point to the market topping. This opinion piece, posted in MarketWatch, uses a multitude of factors to come to this determination. These include the recent Alibaba IPO which blew all prior IPOs out of the water, as well as market sentiment, and stock valuations. The author’s conclusion speaks volumes about how even the biggest critics think it will all play out…
“Martin’s best guess about how big of a decline we have in store: 13% to 18% for large-cap indexes such as the S&P 500, and 20% to 30% for secondary stocks such as those represented by the Russell 2000.
Note that, if Martin is right, the large-cap indexes are not about to suffer an official bear market, defined as a decline of at least 20%. Part of the reason he thinks a full-fledged bear market is not in the offing is the Federal Reserve, which he predicts will “quickly step in to provide extreme liquidity to blunt the decline.”
Again it seems to be all about the Fed and how much power it will have to moderate a market decline.
An 18% decline is really nothing.
So the S&P drops to 2 year lows. Not that big of a deal if the Fed just props it up again.
YOu cant lose.
NOT according to todays DOW….up….17,200plus