Source: http://theeconomiccollapseblog.com/archives/an-expert-that-correctly-called-the-last-two-stock-market-crashes-is-now-predicting-another-one
There are a unique combination of factors, including:
- new record high
- less than 27% of investment advisers are bearish
- Schilling P/E greater than 18
- more than 40% of stocks below their 200-day moving average at the same time.
This combination has only occurred 4 times in the last 50 years:
- in November 1972, seven weeks before a market crash of 50%
- in March 2000, marking the exact weekly high (although the crash did not occur until Sept. 2001)
- October 2007, marking the exact weekly high (although the crash did not occur until Sept 2008)
- on July 17, 2015
So, it is pretty clear a market high has been reached. Although the crash may not occur for another year.
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