The stock market keeps reaching new highs on the major indices: The Dow Jones Industrial Average did it in mid-May, and the S&P 500 and the NASDAQ did it in mid-June. A casual glance at the evening news headlines gives the sense that all is well in the financial markets.discussed a Harris poll showing that 56% of Americans think we are already in a recession, which couldn’t be farther from the truth.
Pessimism is contagious. And so is optimism. But reality eventually rules. So, perhaps now it’s time to ask this question: Could the investing public be equally misinformed about this bull stock market as it makes new highs?It’s highly possible that the stock market headlines about new highs are masking a treacherous oncoming decline that could hit just as baby boomers retire and start depending on their pool of savings for income.
But something happened recently that makes Stack especially nervous about the near-term prospects for the stock market. As he explained in a message to subscribers:“HOWEVER, the number of declining stocks outnumbered advancing stocks on both exchanges. AND there were more stocks hitting new 52-week lows than were hitting new 52-week highs on both exchanges.
“When looking at this negative warning on the two exchanges separately , there were a half dozen instances in each index — — with the greatest number occurring in the final year before the 2000 Tech Bubble Peak.”
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: chicagotribune - 🏆 8. / 91 Read more »