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View Full Version : Credit-fuelled US stock market now ripe for a major crash


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14-06-2015, 10:10 PM
An honorable member of the Coffee Shop Has Just Posted the Following:

The chart below traces the performance of the S&P 500 over the past couple of decades and compares it to NYSE investor credit. Even the most ardent bull ought to have a sharp intake of breath.

Not since 1929 has this Wall Street roadmap looked anything like so dangerous. It’s credit expansion that turbo charges stock markets to the upside but history suggests that it always runs out in the end.

Bond alert flashing red

The longer the party the bigger the hangover after that happens. Global bond warnings have been flashing red for the past few weeks and the professionals are alarmed although few retail investors really get the message.

Unstable bond markets are the canary in the coal mine singing its warning of poison gas coming the way of the stock market. So too is the smaller and smaller number of shares supporting the S&P 500 index at its current lofty levels.

One small uptick in Fed rates or a Greek default as soon as tomorrow and this great bubble is over and what has gone up so far will have a long way to fall…

http://www.sammyboy.com/attachment.php?attachmentid=21788&d=1434290360

http://www.arabianmoney.net/us-stock...a-major-crash/ (http://www.arabianmoney.net/us-stocks/2015/06/14/credit-fuelled-us-stock-market-now-ripe-for-a-major-crash/)
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