Thursday, February 25, 2016

Predicting the next stock market crash

Back in mid January, we predicted that the Stock Market Plummet Will Arrive By May 2016.


Here are some things that predict the upcoming market correction/crash:

Margin debt is reaching astronomical highs.  This happened right before the crashes in 2001 and 2008.

We are overdue for a correction based on moving averages.  The last two crashes happened seven years apart.  It could have easily happened in 2015, but was delayed a little bit, probably because of market manipulation and other factors keeping things propped up in the short term.
If history rhymes this indicator suggests stocks still have a long way to fall

The low price of oil is hurting the economies in many countries, including Russia, the U.S., and the OPEC nations in the Middle East and South America.

European banks are under pressure and some could fail in the next year. [Add news links here.]

One of the only Quants to predict a big market dip is saying that we are "in the ninth inning of a nine inning game" and that bear markets have rarely lasted over 7 years, meaning that we are overdue for a correction.

Quant Master Kolanovic makes a Long-Term (and Bearish) Prediction

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