This veteran analyst hears echoes of the 1929 crash in today’s stock market

[libertybele]

This veteran analyst hears echoes of the 1929 crash in today’s stock market

tocks are climbing following a big wipeout, chiefly for tech. The Nasdaq Composite COMP, +1.25% has been teetering toward correction territory and the S&P 500 SPX, +1.05% and Dow industrials DJIA, +0.92% were halfway there after Monday’s close. With jobs data looming for Friday, even the bravest dip buyers could be forgiven for having second thoughts.

Don’t look for reassurance in our call of the day, where the founder and CEO of BullAndBearProfits.com, Jon Wolfenbarger, predicts U.S. stocks may be “on the verge of starting the biggest bear market since the Great Depression.”

“Now with the Fed talking about tapering and money supply growth slowing
significantly from 39% y/y in February to only 8% y/y in August, perhaps that is
enough of a ‘tight monetary policy’ to change investor psychology to a more
bearish mood? We will see,” he said in a Monday interview and follow-up comments with MarketWatch.

Wolfenbarger, who spent 22 years as an equity analyst at Allianz Global Investors, said while he’s not a permabear — his newsletter offers strategies for profiting when markets go both ways — investors should heed some warnings signs.

Overbullish sentiment, economic weakness, excessive debt levels and limited policy tools are key ingredients for a market rout worse than that seen in 2008-09, he said, adding that a top for the S&P 500 reached a few weeks ago could have been the start. ...........

https://www.marketwatch.com/story/why-this-veteran-analyst-sees-stocks-headed-for-the-biggest-bear-market-since-the-great-depression-11633432477?mod=home-page

[Free Vulcan]

From the Nov 2, 2020 low to the recent early Sept high, the S&P 500 year-on-year was up almost 50%.

That's a total joke and just pure monetary easing driven froth. The air desperately needed to be let out of the balloon.

[catfish1957]

Earlier on another thread I mentioned the difficulty I am having of finding Spot Gold +10.

That is no accident.

[catfish1957]

From the Nov 2, 2020 low to the recent early Sept high, the S&P 500 year-on-year was up almost 50%.

That's a total joke and just pure monetary easing driven froth. The air desperately needed to be let out of the balloon.

There is nothing or any reason that this market is anywhere remotely sustainable.  A lot of what happens in the next few months with fiscal policy will dictate whether this is a '29 ish type crash or a Weimar Republic type ultra-hyper-inflation event.

Either scenario is a disaster, and I hope everyone has prepared.