Not a financial adviser. Never invest with money you cant afford to lose.
A number of technical indicators are flashing bearish signals pointing to a MASSIVE Correction coming for stocks. They have run up since the pandemic lows with little resistance and are priced for perfection and primed for correction. Price to earnings ratios not seen since the tech bubble. This is coinciding with what is likely to be peak inflation fears causing concern over raising rates. Inflation forced rate hikes would cause price to earnings compression. The inflation data over the next few months is likely to indicate an economy running hot. With that said if temporary this should be the worst of it. With July being the first month in which we start to see inflation data normalize. However, with lumber, soy, corn and wheat at 10 year highs just to name a few commodities soaring. Lithium and chips are running in short supply. Meaning cars will be running in short supply. Homes will be running in short supply due to lumber costs. The number of shortages occurring all at once with an economy with a lot of pent up demand is a bad combination especially given the fact the Federal Reserve is still not raising rates. So when the fear comes it will likely be very real. Stocks will hedge and pull back. So a great opportunity to short.
A number of technical indicators are flashing bearish signals pointing to a MASSIVE Correction coming for stocks. They have run up since the pandemic lows with little resistance and are priced for perfection and primed for correction. Price to earnings ratios not seen since the tech bubble. This is coinciding with what is likely to be peak inflation fears causing concern over raising rates. Inflation forced rate hikes would cause price to earnings compression. The inflation data over the next few months is likely to indicate an economy running hot. With that said if temporary this should be the worst of it. With July being the first month in which we start to see inflation data normalize. However, with lumber, soy, corn and wheat at 10 year highs just to name a few commodities soaring. Lithium and chips are running in short supply. Meaning cars will be running in short supply. Homes will be running in short supply due to lumber costs. The number of shortages occurring all at once with an economy with a lot of pent up demand is a bad combination especially given the fact the Federal Reserve is still not raising rates. So when the fear comes it will likely be very real. Stocks will hedge and pull back. So a great opportunity to short.