The chief executive of Milton Berg Advisors, Milton Berg, who heeded his own warning signs earlier this month has turned bearish on the S&P 500 and Nasdaq on July 2 as his two portfolios have seen gains of 20% plus this year. Berg has bailed on stocks and bonds in the longest “economic expansion” in history.
But Berg isn’t the only one who is predicting a market downturn. Bank of America Merrill Lynch, who warned clients Friday of an “overshoot” in credit and equity prices in coming months, also warned that that would be followed by a “big [second half] top in asset prices.” Caution of that kind seems to be only getting louder as we bump along to these new and historic highs, according to a report by Market Watch.
Berg told digital financial media group Real Vision in an interview that there’s one big reason he’s out of the market for now: “We have a list of more than 100 indicators that we match to previous market peaks and of all these 100 only two are inconsistent with levels seen at market peaks.”
Berg uses a trove of proprietary indicators and historical data to make his calls. His claim to fame, outside of working with hedge fund biggies like George Soros and Stanley Druckenmiller, is nailing the 1987 market crash to the day. –Market Watch
But Berg says this market is unexplainable and things are not adding up. The investor says that even as stocks are nearing a peak, thirty-year U.S. bonds on a 6 and 12-month basis are doing far better than they’ve ever done at a final market top. That isn’t really making much sense, says Berg. He also says that the bond conundrum may also send another message to investors: That the final leg of this stock market rally coincides with a bond market rally, which will signal a peak for stocks.
Is that something to watch for? Maybe, considering Berg called the 1987 market crash.
How Do You Prepare Now to Make Recovery From Economic Collapse “Manageable”?
The central bank / US government intervention post 2008 has created distortions in the entire supply / demand equation. Things don’t make sense because the rules and behaviors economists were taught no longer apply. This is both mathematical and psychological as the players are likely embolden with the thought that mistakes will be bailed out and therefore more inclined to take risks.
when wall street insiders bail during a recovery they no a bust is coming shortly.
Real estate, real estate, real estate.
Location, location, location.
I buy bonds, but only Federal government
backed Bills.
I think I have about a pound or two of silver.
I have a few annuities( pensions).
But you cannot beat, owning debt
free, acreage in an ideal location.
Remember all your money is not real,
but a place to pee, raise food, and shelter
is real.
rellik
Here in SW Florida buying virtually any Real Estate bought 2009 – 2014 (maybe later) was a winning investment, it’s however not liquid. Rentals are problematic unless they’re desirable enough, and therefore expensive, to be seasonal vacation homes.
…….until THEY take it from you.
My posts are like a magic act, they appear and then disappear only to re-appear later.
went from hundreds of comments on these posts to a handful…. Very telling… I have lost about $100K due to sites like this telling people to pull your money from the banks etc. …..never again