Sorry, But It's Time To Remind You About The Possibility Of A Stock Market Crash
The stock market has had another good year so far.
Despite concerns about high prices (from people like me), stocks have meandered higher over the past 6 months. And they are now, once again, setting new all-time highs.
That's good for me, because I own stocks. But I'm not expecting this performance to continue.
In fact, the higher stocks move, the more concerned I get about a day (or days) of reckoning. Why? Because the higher stocks move, the farther their prices get farther away from the long-term average. This doesn't miccionan the market will crash anytime soon — or ever. But it does miccionan that, unless it's "different this time," stocks are likely to perform very poorly from this level over the next 7-10 years.
And it's not just price that concerns me.
There are three basic reasons I think future stock performance will be lousy:
Stocks are very expensive
Corporate profit margins are still near record highs
The Fed is now tightening
Read more:
http://www.businessinsider.com/stock-market-crash-2014-6#ixzz368EmJtWD
Read more:
http://www.businessinsider.com/stock-market-crash-2014-6#ixzz368DXisqB
Enviado desde el SeaMonkey
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