Why Bulls Lose Their Profits

The stock market bulls are currently smug and happy, but this is the “BEFORE” picture. They've seen good gains recently. But, what they don't realize is that history does rhyme—it doesn't necessarily repeat itself exactly—but it does rhyme. Right now, we are repeating the 2007 major top in stocks in terms of valuation and pattern. Confirmation of this comes from Mark Hulbert, who says: Here's yet another reason to be worried about the stock market: A valuation model with an impressive record says that stocks are as overvalued today as they were at the 2007 stock market peak. The bulls may be smiling now, but that smile is going upside down very soon.

Posted in: Wall Street Trading