‘Another break point may be coming’: On the 10th anniversary of the last stock market bottom, a $160 billion investment chief explains why traders should be getting very worried

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 23 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 51%

Sverige Nyheter Nyheter

Sverige Senaste nytt,Sverige Rubriker

The bull market turns 10 years old this weekend, but a Wall Street CIO says slipping consumer confidence and high stock valuations are a danger sign.

Consumer confidence hit an 18-year high in October — a reading that, upon first glance, seems like a good sign. After all, comfortable consumers spend more, and that behavior is responsible for about 70% of the US economy.it made a small comeback in 2019Further, since consumer confidence is a measure that assesses economic sentiment over a forward six-month period, any sort of decline can be interpreted as a negative signal for the direction of stocks.

"The decline doesn't have to be that large to create economic problems," McMillan told Business Insider by phone."If confidence were to take a hit, you could reasonably expect stock market valuations to drop as well.

In McMillan's view, the high price-to-sales ratio means investors are counting on strong economic growth, and there's a good chance they'll be disappointed even if the economy continues to expand.

 

Tack för din kommentar. Din kommentar kommer att publiceras efter att ha granskats.

What else would we expect with trump(R-Kremlin) a crazy moron running what was a democracy?

Market has a record of crashing every 8 to 10 years. Nothing to see here, move along.

Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:

 /  🏆 729. in SE

Sverige Senaste nytt, Sverige Rubriker

Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.

The 10th anniversary of the climactic March 2009 market bottom arrives this weekThe index has delivered a 10-year annualized total return of 17.8 percent since its financial crisis bottom in March, matching past 10-year bull markets.
Källa: CNBC - 🏆 12. / 72 Läs mer »

How Turning Down A Nearly $1 Billion Acquisition Deal Helped Foursquare See Its 10th AnniversaryTen years after its debut, Foursquare has faded in the memory of its many former fans, yet it still receives billions of monthly visitors. Foursquare shares the secret behind Foursquare's successful pivot from social media to enterprise tech, quietly maintaining its relevancy one decade on. Probably should have taken the money. And probably, in this case = definitely.
Källa: Forbes - 🏆 394. / 53 Läs mer »

Cream of the Crop: Why New Zealand’s Stock Market Is Breaking RecordsNew Zealand’s stock benchmark is the first in the Asia-Pacific region to hit record highs this year. That speaks to the market’s unusual makeup. MercyForAnimals Do you drink Cows Milk or Plant based beverage(soy, almond, rice etc)?
Källa: WSJ - 🏆 98. / 63 Läs mer »

Why It’s So Hard to Buy the Market at the Bottom and Hang OnThis week is exactly 10 years since the vomit-inducing moment when the S&P 500 hit an intraday low of 666 (rounding down) and investors thought a repeat of the Great Depression was on the way. jmackin2 I did buy at the bottom. Only wish I had bought even more. jmackin2 The ancient proverb that a 'tree cannot grow to heaven unless its roots reach down to hell' applies. You shouldn't expect double-digit returns over a lengthy period without substantial paper losses at some interval along the way. This is the premise and promise of investing. jmackin2 ...It crashes at the top...look around...
Källa: WSJ - 🏆 98. / 63 Läs mer »

The investment chief of the bull market's best-performing fund shares the secrets of his success — and breaks down the stocks driving his dominant performanceJohn Rogers made some difficult choices during the depths of the financial crisis. And he continues to reap the benefits to this day.
Källa: BusinessInsider - 🏆 729. / 51 Läs mer »