A correction might be in the works but the technicians are creating a story that fits their needs. They are not showing the big picture.
Technicians are not showing the 12 years up to 1987 where S+P went up 400-500%.
The past 12 years here, we have had 2 major 50% corrections with companies becoming ridiculously lean with tremendous amount of cash on hand.
Given that, the global distribution of wealth will only continue. How America retains its standing is only through advanced technologies...tesla and celldex and less dependence on foreign everything. Its slowly happening.
could be correct but those same SP500 cos are laying off workers at an alarming rate..on one hand it signifies Cost Containment and doing more w/ le$$,right? But on the other hand it signifies Markets are shrinking, competition is intense, economies of scale cont to pressure Revs down and sp is therfore pressured too...than again GOLD tells the true story..we have INFLATION everywhere and the media is COMPLACENT about it.....when it finally hits and compound the debt picture on top...thats all the Markets will need to give us a repeat of BLACK FRIDAY 1987 my friend!
bloomberg is running a piece right now, and this guy has charts all over the place to PROVE his theory of 1987 REDUX! It looks probable to me, likely and yet not 100% guaranteed! Hsty does repeat as we all know...much of his argument has to do w/ corp bond debt vs stock market move and the relationship is spiking RED WARNING again!
The artificial ""GS short play"" on Gold down 50% in 1 year for the last year...the spiking of Au now..the end of QE coming..the contng recession the bad employment..its a whole host of signals that add up to MARKET CRASH of ~20-25% possible this Fall...I would sell all winners and raise precautionary cash but Ive been saying that for months and people say Im #$%$ over the loss of market move due to high cash on the sidelines.... but ive maintained about 35-50% cash now for months..im still in the market just heavy cash at all times..ive bought every DIP though and SOLD evry PEAK..that has allowed me to have a +++ year overall!
Now Im slowly moving out of some Bios that have done well..and putting that money back into Large Pharmas that pay nice DIVIS! I suspect we see sp pressure on Pharmas like JNJ, BMY and MRK as they are forced to spend money to acquire new assets! The new paradigm is buy up PROVEN IP not pie in the sky as before...and this has forced the PHARMAS to wait into P-3 and later to move..thats nore costly but its guaranteed...that puts SP pressure on them and so I wait on BMY now to move to $41-40 and I BUY! As it drops I will buy w/DD strategy adding more shs at lower cost!
That has pretty much been my MO for 25 years now and it has always worked well for me!