Stock Market Crash Coming
Q1 earnings season has the best start since 2011. Traders are focused on Q1 earnings season because the stock market began rallying in November in anticipation of higher earnings from Trump’s policies.
The stock market is way overvalued and is not being driven by fundamental data but instead by the hope that future earnings in 2018 will be better as the Trump Administration executes on its agenda.
The Shiller P/E (CAPE) ratio is over 28 and has been exceeded only in the 1929 mania, the 2000 tech mania and the 2007 housing and stock bubble.
Worse, mainstream media groups continue to report that everything is fine in markets and that you should be buying stocks. However, institutional traders are not buying stocks at all. They are unwinding long positions as evidenced by the falling money flow. When the money flow falls, it means the market is under distribution.
Below is a solid fundamental analysis on what is happening in the stock market right now.