A 'perfect storm' correction is coming?

[tsptalk]

What do you think?


A 'perfect storm' correction is coming, and nothing can stop it: Rosenberg

"You have a perfect storm here if you get something like a Fed rate hike into the next several months," Rosenberg said Thursday on CNBC's "Futures Now. "The problem is that the market is not priced for it. I wouldn't be surprised that we see some kind of repeat as we had towards the end of last year into January-February, which was something close to a 12 percent correction."

http://www.cnbc.com/2016/09/09/a-pe...coming-and-nothing-can-stop-it-economist.html

 

[wavecoder]

What I think? Listen to cnbc and lose money. These experts are almost never right. If they say market is going to crash, I'm all in.

With that said, he's right. A correction definitely is coming. Now whether it happens tomorrow, next week, next month, or 2 years from now is anybody's guess.

 

[pmaloney]

HA! That's not the reason the perfect storm is coming. :smile:

 

[James48843]

Bank of America-Merrill Lynch warn- analysts say-
"Bubble is here"- warning on stocks-

The stock market is getting expensive, and the analysts at Bank of America Merrill Lynch warn that many stocks are reaching valuations last seen during the Tech Bubble.

The most popular way to measure value in the stock market is to take the price and divide it by earnings. This is the price/earnings (P/E) ratio. When the P/E ratio is above average, stocks are arguably expensive. When it’s below average, stocks are arguably cheap.

Most analysts have already observed that the average P/Es for the S&P 500 (^GSPC) are well above their 5- and 10-year long-term averages, but they aren’t yet at levels seen during recent bubbles.
But the median P/Es tell a far more frightening story.

“The S&P 500 median P/E is currently at its highest levels since 2001 and suggests that the average stock trades a full multiple point higher than the oft-quoted aggregate P/E,” Bank of America Merrill Lynch’s Savita Subramanian observed. “This puts it in the 91st percentile of its own history and just 14% from its Tech Bubble peak.”

I personally am starting to be concerned about stock values right now- we are due for a pullback in my opinion.

More here:
https://finance.yahoo.com/news/baml-average-stock-is-trading-near-tech-bubble-levels-135038896.html

 

[rktect1]

It seems that Bank of America missed out on an opportunity to get into stocks. The perfect storm, triangle, that is on the charts usually breaks out to the side that the previous pattern was going, which is up. So fear mongering on bank of America may just be them trying to get people on the sidelines so they can get in at a cheaper price.

That is my theory, it may be full of holes, but I am sticking to it.

Unless it breaks downward.