The Stealth Bear Market That Could Take Markets By Surprise

The Stealth Bear Market That Could Take Markets By Surprise

Article SummaryChina’s stock market correction might only be the first sign that a global recession is coming.Stock valuations are 28% above historical averages while economic growth is stagnating which could trigger a major correction.A Fed rate hike would be a disaster for stocks and another round of QE could be in order.Margin levels are at dangerous new highs and broad based buying could mean an unsustainable atmosphere without new cash flow to support it.Investors have been on a bit of a rollercoaster ride the past several days as the markets dipped down and back up by hundreds of points. Volatility rocketed up with the VIX ending Thursday the 20th at 19.14 and reaching a staggering high of 53.29 intraday on Monday the 24th – an increase of more than 178% in less than two trading days… Read full article at Seeking...
Great Expectations And Truth In Earnings

Great Expectations And Truth In Earnings

Article Summary72% of companies that have reported earnings issued negative guidance, which is higher than the 5-year average.Revenues have fallen for two back-to-back quarters, indicating a bearish signal for US stocks.The Fed is propping up stocks right now based on speculation of a rate hike that is looking more and more unlikely next month.The broader indices continue to tread water at or near all-time highs despite unconvincing mixed economic data and crises in both Europe and China. While the Greek debt issue seems to have come back under control, the collapse in the Chinese stock market has yet to bleed over into domestic markets. Yet the threat of a possible loss has not seemed to faze stocks… Read full article at Seeking...