After years of record-breaking growth, major market indexes are stagnating. The S&P 500 (SNPINDEX: ^GSPC) is down 0.42% over the past month, as of this writing, while the tech-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) has sunk by nearly 2% in that time.
Some market indicators are also raising red flags over valuations. The S&P 500 Shiller CAPE Ratio, for instance, is the highest it's been since the dot-com bubble, suggesting the index is trading at a premium. The Buffett indicator is also at a record high of 236%. For context, Warren Buffett himself noted that when this indicator nears 200%, investors are "playing with fire."
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Now, this doesn't mean that a bear market is around the corner. But downturns are a normal part of the market's cycle, so it's not a matter of if we face a pullback, but when. Here's my number one piece of advice about how to prepare right now.
Volatility could be looming, but a century's worth of history proves one thing: The investors who win out are those who stay invested for the long haul.
#buffett
Some market indicators are also raising red flags over valuations. The S&P 500 Shiller CAPE Ratio, for instance, is the highest it's been since the dot-com bubble, suggesting the index is trading at a premium. The Buffett indicator is also at a record high of 236%. For context, Warren Buffett himself noted that when this indicator nears 200%, investors are "playing with fire."
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Now, this doesn't mean that a bear market is around the corner. But downturns are a normal part of the market's cycle, so it's not a matter of if we face a pullback, but when. Here's my number one piece of advice about how to prepare right now.
Volatility could be looming, but a century's worth of history proves one thing: The investors who win out are those who stay invested for the long haul.
#buffett
3 months ago
