Stock market: Every indicator points to a ‘historic bubble,’ strategist says

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Is a bubble forming around the stock market (^DJI, ^IXIC, ^GSPC)? And if so, is it about to burst?
B. Riley Wealth Management Chief Investment Strategist Paul Dietrich sits down with Yahoo Finance to discuss whether certain sectors of the market are becoming overvalued and if the equity market is edging closer to correction territory.
“I’m sure that every analyst… is looking at all the different valuation methodologies, and they’ve got to come to the same conclusion because there’s no ambiguity here,” Dietrich says about the probability of a market bubble. “It is bizarrely overvalued in most of these things. And so, you’re seeing the smart money right now moving massive amounts into cash.”
#youtube #stockmarket #stocks
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34 COMMENTS

  1. 80% equities 20% cash. I plan to take advantage of the s&p 500 as leading indicators predict above 10% rise by this year, my only issue is how to properly allocate a large stock/bond portfolio for substantial gains at minimum risk.

  2. "Everything animate or inanimate that is within the universe is controlled and owned by the Lord. One should therefore accept only those things necessary for himself, which are set aside as his quota, and one should not accept other things, knowing well to whom they belong."

  3. The S&P has been higher than 200 day SMA a few times before, even 16% higher, and went onto rise further for months. That's not a good indictor, insider selling however is notable. More money is lost waiting for a recession than actual recession – Peter Lynch. So don't want to stay in cash if signals are false positives.

  4. Yup. It's in a bubble. I sold a year ago and the SP500 rocketed to the moon. When I decide to buy back in, the stocks will crash back to earth. That's the power I seem to have. God or the universe just wants to keep me poor.

  5. I understand your concerns, and it's natural to be worried about the impact of economic factors on your retirement plans. The 2008 financial crisis indeed had a significant impact on many individuals' financial situations, and it's a valid concern to compare the challenges of that time with the current situation.

  6. maybe smart money is moving into cash because they trynna diversify their portfolios lol. If you own 200 billion of META, i can understand if you'd like to sell 1 billion for real estate or upcoming economic boom!

  7. All I heard in terms of analysis was that the SP 500 was 13% above its 200 day moving average, that forward p/e has increased (which is fairly normal given the expected increase in productivity and other economic growth assumed from AI over next decade), and that multi-billionaires sold some stock. Not really anything too significant in my opinion.. we are probably going to trade sideways or decrease a bit from now until the Fed starts cutting, that’s been expected. And many analysts have been calling for the 2nd half to be better than the 1st for the stock market. So can the SP decline 13% over the next 6 months? Absolutely. It doesn’t mean a bubble is bursting and I am highly critical of someone trying to make it sound like some dramatic economic moment. Sounds more like someone who’s trying to suppress retail investors from buying into the market so he can get better pricing as we ramp up a multi-year bull market.

  8. Guys all you need is couple thousands to get financially free, even if it takes waiting 2-5 years. Just imagine knowing tha that the market corrects betwee 2-5 years. I'm saving aside cash for whenever that correction comes. Don't worry, it's going to comoe, don't know when, don't care when. But when it does, i'll prefer putting 100k on good companies in bad markets than good companies in good markets..But that's just me.. I can wait all day, all year, al decade. .not a prob for me..

  9. news flash: big tech doesn't care about small regional banks refinancing their debt in the next 18 months. they are raising cash BECAUSE IT FINALLY EARNS INTEREST. conflating the two is grasping at bearish straws.

Comments are closed.