Wednesday, June 11, 2014

Is a big stock market correction coming? Notice any patterns?

The stock market has recently reached an all-time high, and many people are looking at their brokerage accounts and celebrating. However, I wouldn’t pop the corks on those champagne bottles just yet. There’s a chance that this bubble is about to burst with a big stock market correction on the horizon.
A look back at the S&P 500 might shed a little light on why many financial professionals believe a BIG correction is coming.


Notice any patterns? Each of these peaks in value was built on a market bubble. We had the “dot com” bubble in 2000-2001, and the sub-prime lending bubble in 2007-2008. Each of those bubbles burst and was followed by a sharp correction in the market.

People are buying High in the Stock Market, but should they be? Your clients, more than ever, need you to help them make decisions about their money.


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