Is The Stock Market Really "Due" For A Big Drop? Have A Look At This Chart. By Gregory Mannarino

in #money6 years ago (edited)

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Have a look at the chart below.
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What you are looking at is a major divergence between what the S&P 500 is doing, and high yield bonds over the last 10 years. This divergence really got started in 2012, and the red line denotes where we are today. What this chart is demonstrating is the difference in performance between stocks and high yield debt however, we are reaching extremes-meaning one of three things will happen. (Possibly a combination of the three).

  1. Stock market valuations will come down or
  2. Junk bonds will rally.
  3. Some combination of the above 2 will happen.

It is hard to argue that stocks are not overvalued, so what this divergence should tell you is stocks are in fact due for a substantial pullback. Now just because this diversion exists does not mean that stock market valuations will return to more normal levels any time soon, it means we need to be mindful that a drop in stock market valuations is coming.

While it is virtually impossible to exactly time when a correction in the price action of anything will occur, just being mindful that one is due allows you to plan ahead and be ready when it does-and that puts you light years ahead of most other investors.

Gregory Mannarino, "The Robin Hood Of Wall Street."

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Thank You, Gregory, Upvoted, Resteemed.

really nice post I like it tnx for share...re-steem

Upvoted and resteemed.

reesteem sir

upvoted and resstem

That'great to know upvote and resteem.

resteemed

resteemed sir!

Beautiful Post well done

Thanks + UPVOTE @marketreport !

a nice post really

re-steem

wow amazing post this super...re-steem

Resteemed and upvote

Yes sir resteemed and upvote Mr robin hood

If am to say stock market will come down

Time for a period of puts maybe?!

I was thinking the same thing.

Resteemed and upvote

Resteemed and upvote

re-steem

What goes up must come down.📉

In real value yes. But not in dollar value if the dollar crashes hard

Either way the fact is true
It will come down! Just a question of in dollar terms or real value terms. Greg is right about all this!

UPVOTE..resteem @marketreport

upvoted and resstem

Wow that chart tells the story! "Insanity" thank you Greg upvoted and resteemed

Teşekkür ederim. :)

upvoted and resstem

upvoted and resstem

The rise of the SP 500 index is an unexplainable situation, as there are no bilateral announcements yet and geopolitical risks are increasing in the world, just because the Dollar is weak and there are buyers. As a falling volatility only rises in commodity prices, the shares that will remain between these two can be very badly affected. Because of this, the upsurge of the SP 500 index is not real, and after the ascension, short-selling sales positions can make money. @mafsteem @marketreport

Invaluable information today Greg! Upvoted!

Head and shoulders on TLT also. Upvoted and resteem

Bonds & dollar crash is supporting stocks

Your post is really awesome.
The market will think very soon it will come earlier.
The charts are so beautiful.
thanks for sharing

upvoted and resstem

upvoted and resstem

Great information sir upvoted and resstem

resteem finish

upvoted and resstem

super post sir
re-steem

thx Greg. Resteemed and upvoted

Upvoted done.

Thanks for the info! And thanks for always talking about steemit on youtube, thats why i started! Thanks again :)

upvoted

good post friends. help my blog resteem friends ya

wow..that's great........///////// looking unique something.........../// thank's for sharing........///////// love… upvoted and resteemed

Thank you Brother Greg for always showing dummies like me (!) out there what is going on with market activity. I especially appreciate your use of graphics like the chart above. You are the man !

I feel sorry for a person that thinks the Dow will continue as it is for much longer. They should take some profit and purchase some gold, silver AND prepare for hard times...Thanks Greg. Upvoted and Resteemed.

upvoted and resstem

Resteemed and upvote

The Robin Hood

resteem sir

Up-voted and re-Steemed.

Excellent post and thanks for sharing this important information about stock market with us, it's really helpful.

Japanese Purchases Of US Treasurys Tumble - Zerohedge article.

learning and helpfull post...re-steem

I like this post really nice and helpfull
re-steem

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