16 Reasons for Equity Markets to Fall Soon

Seeking Alpha Article

1) The equities markets have had a huge run up of over 50%.They are overbought. At approximately 18x 2009 Earnings, they are priced far above fair value. At the beginning of March 2009, they were price at only 11x 2009 Earnings. According to Art Cashin and others, fair value for the S&P500 is at about 850 to 880. At approximately 1020, the S&P500 is far from there.

2) The Insider Selling/Insider Buying ratio is 30.6. This is the highest that ratio has been since it has been tracked (2004). Those corporate officers probably know something.

3) Retail Sales are still decreasing. They were down about 4.4% for Aug. year over year according to Redbook. The much anticipated back to school season has been a bust so far. Even the Cash for Clunkers program, which gave automakers a shot in the arm, disappointed analysts. Plus it likely robbed future auto sales to record better numbers now. The national rate of auto loans that were 60 days past due was up 7.35 percent for the Quarter ended in June. That doesn’t sound like a lot of people are going to be able to afford to buy new cars soon.

Go to article to read the rest of them. Mods keep editing it and it removes the last 13 when they do that. So I'm leaving it alone. Go to the article.

There are more things to add of course, but these 16 are a great place to start.


[edit on 20-9-2009 by johnny2127]

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[edit on 20/9/2009 by Mirthful Me]

[edit on 20-9-2009 by johnny2127]

ouch.

This things going to topple hard core.

I cant wait until it does. People are goign to start waking up to themselves. It's going to be a real eye-opener.

I just want technology to keep going orward though so i really dont want it to topple over but damn!!

reply to post by DaRAGE


A collapse of some sort is needed to return our country and economy to a state of health. The long the govt props it up, the harder the fall will be. If its left until a collapse or fixing of our system isn't at a time of our choosing, it will be much much worse.

I just hope whenever it happens, there isn't widespread pain and deaths.

reply to post by johnny2127


Indeed we need a reset back to freedom and free market and as quick and painless as possible.

reply to post by Anonymous Avatar


True. It will come at some point due to for financial management from our govt. The question is more, when? The sooner it happens, the least damage it will do. The more we put it off the more harmful it will be....