Is the five-year-old bull market over? That question seems to be on the minds of nearly every investor and market strategist as major U.S. averages have stalled in 2014 while momentum stocks such as Facebook (FB), Twitter (TWTR) and biotechs show signs of weakness. The Daily Ticker's Henry Blodget warned investors in January that a stock market crash could be coming and he reiterates that call in the accompanying video.
Long-term valuation measures suggest "stocks are radically overvalued," he says. "The higher we go the more scared I get. We're looking at a decade of very crappy performance."
Blodget declared that both stocks and bonds are priced to have "the worst-long performance in history," in a Business Insider column published Tuesday. He tells The Daily Ticker's Aaron Task that stocks could go higher -- even double -- from current trading levels but "at some point we're going to revert to long-term means."
Bonds are facing the same fate as stocks, he adds, and investors need to prepare themselves for "lousy" performance in the next seven to 10 years. What does that mean? Should investors direct their money toward gold and real estate?
"I'm not selling anything," Blodget notes. "I am expecting to"earn only 2% a year for the next 10 years."
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- Henry Blodget