He’s not exactly a doom-and-gloomer, but Lance Roberts, chief strategist at RIA Advisors and author of the Real Investment Advice blog, just placed bets against the S&P 500 in all his portfolios to guard against a looming downturn.
With that in mind, Roberts built a rather bearish case using several charts he believes point to market weakness ahead. Here are a few of those red flags, just don’t show them to those clinging to the belief this bull market has room to run.As this chart of the CBOE’s volatility index VIX, -0.08% shows, investors, thanks to Federal Reserve rate cuts and a fiscal-stimulus-driven rally in the stock market, are back to levels of extreme complacency.
Meanwhile, he pointed out that the deviation between corporate GAAP earnings, or those that adhere to Generally Accepted Accounting Principles, and corporate profits has reached “unsustainable” levels. This will revert to the norm, he said, and that’s typically a negative. Expectations for corporate earnings going forward are still way to elevated, and with corporate share buybacks slowing, this leaves lots of room for disappointment,” Roberts wrote.
Roberts also pointed to sentiment being heavily skewed toward buyers, and when that flips — it always does — whipsaw reversals tend to follow.
...hahahaha....thought that was a picture of Republican Senators hard at work.....my bad!!
As an options trader I want that ghaddamn VIX at about a 23! As I am prepping for the month of Christmas I want it at about a four... 😂👍🏻
Looks like tRUMPs Republicans!
Why is marketwatch always running these bearish articles?