Financial Markets At Critical Juncture: Could A Crash Eventually Happen? | Seeking Alpha
This is an excellent article on why the stock market is in trouble. Do not be deceived by the stock market rallies. The stock market highs will start getting lower. Not only are stocks overvalued, but we are having strife with Russia that shows no signs of ending. The food and energy sanctions on both sides will bring down many companies, and this will bring down the economy. Then, when the economy falls, stocks will fall.
The author mentioned that the Dow Jones Industrials and high yield bonds (HYG) have recently tested their 200 day moving averages. This is an ominous sign, and stocks could easily roll over from here. TLT, the long term government bonds ETF, is the best place to be now along with cash. TLT pays a small monthly dividend, and the stock has very little downside due to global problems and overextended stocks. TLT also has the possibility of double-digit gains when the market starts falling in earnest. I am buying more of the stock on Monday, and it will become my biggest holding.
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