Money Morning Capital Wave Strategist Shah Gilani surprises Stuart Varney of FOX Business' "Varney & Co." today (Wednesday) when he states he believes the U.S. is sitting on a stock bubble right now.
Find out why Gilani sees the markets as "well over-cooked" – creating a stock bubble – from the Fed's strategy in the following video segment:
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By Garrett Baldwin, Executive Producer, Money Morning - • Print | Email
Some call it a "perfect storm" and others a "financial apocalypse," but it doesn't matter what you call the fiscal headwinds facing the U.S. economy – just that you watch them, and the stock market "crash talk" they're stirring up.
With talk of the Hindenburg Omen, credit crunches, and struggling emerging markets, it's important to prepare for the potential impact of bumps ahead.
By Diane Alter, Contributing Writer, Money Morning - • Print | Email
The stock market today killed the idea of "turnaround Thursdays"…
The Dow fell 225.39 points Thursday, one day after the benchmark fell 113 points, its first triple-digit decline since June 28. With Thursday's drop, the Dow hit its first back-to-back triple-digit decline since June 19-20, when it plummeted nearly 560 points over the two days.
June's rout was spurred by comments from the Federal Open Market Committee (FOMC) following its June meeting. At the time, the central bank said it would taper QE this year should the economy and job market continue to improve.
The current swoon, however, stems from way more than the Fed…
Thanks to billions of dollars in quantitative easing from the U.S. Federal Reserve, fears over a looming stock market crash have been put on hold lately.
The Standard & Poor's 500 Index is up 16% this year. The market's outstanding performance has shrugged off weak earnings reports, slowing growth in China, and continued weakness in Europe.
It seems that zero interest rates really do trump all. Even Warren Buffett is unsure how all this ends, telling shareholders at the Berkshire Hathaway (NYSE: BRK.A, BRK.B) annual meeting "it's really uncharted territory. It's a lot easier to buy things sometimes than it is to sell them."
And I recently heard legendary real estate investors who at a conference compared the market to a game of musical chairs where everyone keeps playing because the music – QE – is still going.
If you're contrarian, then Barron's latest "Big Money" poll and its magazine cover just gave you reasons to be on the lookout for a stock market crash.
The semiannual poll of professional investors found that 74% of money managers are bullish or very bullish about the prospects for U.S. stocks – an all-time high for Big Money, going back more than 20 years.
Barron's drives the point home with its over-the-top cover titled "Dow 16,000!"
But not everyone feels as confident as these polled investors – especially since the issue follows 2013's worst weekly performance for stocks.
"Rule o' Thumb: When the cover of a major financial magazine features a cartoon of a bull leaping through the air on a pogo stick, it's probably about time to cash in the chips," mutual fund owner John Hussman wrote on his Hussman Funds website.
