"Business Insider" : Signs of a stock market bubble

In a note on Friday, Rosenberg shared 10 reasons to be cautious on the US stock market, which are also classic signposts of market tops: Gluskin Sheff's David Rosenberg is concerned about a stock market bubble.


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BUCKLE UP: The stock market could get crazy


BUCKLE UP: The stock market could get crazy
UBS/BloombergUBS argues that one of the reasons that this risk premium has developed is a lack of correlation between stocks in the S&P 500. The VIX is around 11 while actual recent moves in the S&P 500 represent a volatility less than 7%. Fed rate hikes during such weak quarters have generally been accompanied with or followed by market instability. When this occurs in a bull market, valuations tend to become stretched, and the US equity market is currently trading above 20x earnings on a trailing 12 month basis. For the majority of the last 100+ trading days, the CBOE Volatility Index (VIX) has hovered around 11, a very low level.

This is the most overvalued stock market on record — even worse than 1929


This is the most overvalued stock market on record — even worse than 1929
This is the most dangerous and overvalued stock market on record — worse than 2007, worse than 2000, even worse than 1929. According to the World Bank, the total U.S. stock market is now valued at more than 150% of annual gross domestic product. Or so warns Wall Street soothsayer John Hussman in his scariest jeremiad yet. Husssman, a professional economist and well-known Wall Street figure, has been here before. Market veterans note that even if Wall Street is overvalued, as some of these things suggest, there is nothing to prevent it becoming even more so before any correction.


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collected by :Jack Luxor

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