Investors are ignoring the parallels between stocks today and ‘heady’ years of 1929, 1999 and 2007. Do this next, says strategist.

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How do stocks now resemble the heady markets of 1929, 1999 and 2007? Here's one strategist's take:

Post Labor Day sees investors returning to the S&P 500 SPX, -0.23% near all-time highs and some dark economic shadows lurking. Chiefly in the worry corner is Friday’s weak jobs data, which comes against backdrop of higher prices, leading to whispers of dreaded stagflation.

5. Individual investors make up 20% of average daily volume for stocks, twice the level of two years ago. Many big market tops of the past — 1929, 1999/2000 — were marked by big jumps in investor activity. “If/when this ‘everything rally’ ends, most everything will decline. Therefore, some cash will be one of the few hedges that investors will find successful if/when the market corrects,” said Maley.

Columbia Property Trust shares CXP, +15.78% are soaring after the real estate investment trust announced a $3.9 billion deal to be acquired by funds managed by Pacific Investment Management . Goldman Sachs GS, +0.31% will list its alternative assets management unit Petershill Partners on the London Stock Exchange.

 

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