10 Warning Signs of a Dangerous Market

by Attain Alternatives Blog

While many investors may be breathing a sigh of relief thanks to the bounce off the February low, it’s still not all roses in the equity markets. There are some worrying undercurrents that could 10 Warning Signs of a Dangerous Marketspell more trouble ahead, not to mention some analysts claiming there’s just 2% of upside in the S&P 500, and 20% downside.

Ten warning signs that all is not well in the markets: Declining profit margins; expensive price-to-sales ratio; industrial production is rolling over; YSE margin debt is at record levels; margin debt to GDP is higher than in 2000 and 2007; wild speculation caused by a general belief that the bull market will continue forever; record numbers of people invested in stocks; investors are selling dividend funds, MLPs, REITs and high yield; the bull-to-bear ratio indicates unprecedented optimism; and turmoil in high-yield bonds.

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