recession fears across the previous months until the US Federal Reserve initiated a massive rate cut of 50 basis points. However, top economists are of the opinion that this may not prevent a message stock market crash in the future as there are various other market factors becoming catalysts of a massive depreciation of certain high value stocks amid high valuations, investor positioning and market sentiments.
These factors are severe warning signs for the US stock markets and according to the AAII Sentiment Survey, which tracks all these above scenarios. According to economic expert Rosenberg, all of these factors are a summation of all momentum-driven stock markets.
The investors were made aware by Rosenberg that chasing the overvalued market might not be a wise decision. JP Morgan reportedly once commented that he got wealthy not by buying at the lows and selling at the highs, but rather by being involved in the middle 60% of the bull market, according to Rosenberg.
There are severe concerns and risks looming around the S&P 500 stock as its value is continuously depreciating overtime, and has hit record low in the month of September this year. According to a previous ET report, this premium stock could stay at its lowest ranges in the next decade as well. Rosenberg has also pointed towards the emerging science of economic weakness, where a rise in unemployment and a decrease in job openings are also key factors in this scenario.
Could a US recession be
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