The USA stock market is entering the final stages of a blow off top.
1. Margin lending is at record highs, above the 2007 levels.
2. Stocks are 25% above their median for the last 30 years as measured against earnings. They have only been here four times, each preceded a crash.
3. All of the price rises this year have come from PE expansion not earnings growth
4. The market is steepening in its ascent, always the sign of a looming parabolic top.
5. Insiders are selling
6. The fed is juicing the market with $85 billion a month that won’t stop till early new year at the latest (if ever).
Sooner or later this market is going to tank and all the hot money will evaporate. The last time this happened in 07 gold tanked too and the US dollar soared. The dollar is now wounded but still kicking. Invest safely.