Last edited Wed Nov 5, 2014, 04:32 AM - Edit history (1)
Why the Next Stock Market Crash Will Happen Any Day Now
The first chart shows that the annual S&P 500 consensus earnings-per-share is expected to come in much lower than originally thought. Estimates started out near $125 in January 2012, and have now fallen 10% to only $112. Despite the warning sign of falling earnings, the S&P continues to climb.
The second chart shows that stocks are currently very expensive compared to their 10-year average. While stocks typically have a price-to-earnings ratio of 15, they now sit at a ratio closer to 23. That means stocks are priced 53% higher than their 10-year average, which should worry any investor.
The third chart shows that investors are extremely bullish on the market right now. The reading is nearing a 10-year high, and most of us know from experience what happens when market sentiment is too far one way or the other; a snapback occurs. If the “herd” is this bullish, it’s generally a good idea to be very cautious.
The fourth chart shows that the VIX, or volatility index, is near a historic low. As the markets have rebounded over the last few years, investors have become complacent. They have priced nearly all risk out of the market, and it will only take one scary event to send volatility higher and investors fleeing the markets.
Read Latest Breaking News from Newsmax.com http://www.Moneynews.com/MKTNews/Market-Collapse-Finance-Stocks/2013/03/01/id/492699/#ixzz3IBDgLvSO
I don't have any advice as to what you should do. Research what economists are saying and look for nonpartisan sources. Republicans are obviously killing the economy by transferring the wealth to the hands of a few and eventually a crash or recession will occur but good/bad news & perception drives the market until then and I don't rule out the possibility of war under either party which is an economy & stock market killer
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