Is The Stock Market Really "Due" For A Big Drop? Have A Look At This Chart. By Gregory Mannarino

in #money4 years ago (edited)

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Have a look at the chart below.

What you are looking at is a major divergence between what the S&P 500 is doing, and high yield bonds over the last 10 years. This divergence really got started in 2012, and the red line denotes where we are today. What this chart is demonstrating is the difference in performance between stocks and high yield debt however, we are reaching extremes-meaning one of three things will happen. (Possibly a combination of the three).

  1. Stock market valuations will come down or
  2. Junk bonds will rally.
  3. Some combination of the above 2 will happen.

It is hard to argue that stocks are not overvalued, so what this divergence should tell you is stocks are in fact due for a substantial pullback. Now just because this diversion exists does not mean that stock market valuations will return to more normal levels any time soon, it means we need to be mindful that a drop in stock market valuations is coming.

While it is virtually impossible to exactly time when a correction in the price action of anything will occur, just being mindful that one is due allows you to plan ahead and be ready when it does-and that puts you light years ahead of most other investors.

Gregory Mannarino, "The Robin Hood Of Wall Street."

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Thank You, Gregory, Upvoted, Resteemed.

really nice post I like it tnx for

upvoted and resstem

That'great to know upvote and resteem.


resteemed sir!

Beautiful Post well done

Thanks + UPVOTE @marketreport !

a nice post really


wow amazing post this

Resteemed and upvote

super post nice sir

Yes sir resteemed and upvote Mr robin hood

If am to say stock market will come down

Time for a period of puts maybe?!

I was thinking the same thing.

Resteemed and upvote

Resteemed and upvote


What goes up must come down.📉

In real value yes. But not in dollar value if the dollar crashes hard

Either way the fact is true
It will come down! Just a question of in dollar terms or real value terms. Greg is right about all this!

UPVOTE..resteem @marketreport

upvoted and resstem

Wow that chart tells the story! "Insanity" thank you Greg upvoted and resteemed

Teşekkür ederim. :)

upvoted and resstem

upvoted and resstem

The rise of the SP 500 index is an unexplainable situation, as there are no bilateral announcements yet and geopolitical risks are increasing in the world, just because the Dollar is weak and there are buyers. As a falling volatility only rises in commodity prices, the shares that will remain between these two can be very badly affected. Because of this, the upsurge of the SP 500 index is not real, and after the ascension, short-selling sales positions can make money. @mafsteem @marketreport

Invaluable information today Greg! Upvoted!

Head and shoulders on TLT also. Upvoted and resteem

Bonds & dollar crash is supporting stocks

upvoted and resstem

Your post is really awesome.
The market will think very soon it will come earlier.
The charts are so beautiful.
thanks for sharing

upvoted and resstem

Great information sir upvoted and resstem

upvoted and resstem

resteem finish

super post sir

thx Greg. Resteemed and upvoted

Upvoted done.

Thanks for the info! And thanks for always talking about steemit on youtube, thats why i started! Thanks again :)

good post friends. help my blog resteem friends ya

wow..that's great........///////// looking unique something.........../// thank's for sharing........///////// love… upvoted and resteemed


Thank you Brother Greg for always showing dummies like me (!) out there what is going on with market activity. I especially appreciate your use of graphics like the chart above. You are the man !

I feel sorry for a person that thinks the Dow will continue as it is for much longer. They should take some profit and purchase some gold, silver AND prepare for hard times...Thanks Greg. Upvoted and Resteemed.

upvoted and resstem

Resteemed and upvote

The Robin Hood

resteem sir

Up-voted and re-Steemed.

Excellent post and thanks for sharing this important information about stock market with us, it's really helpful.

Japanese Purchases Of US Treasurys Tumble - Zerohedge article.

learning and helpfull

I like this post really nice and helpfull

amazing post

mind touch post thx for

great post nice

This post really nice sir

what a post really super

Sir, Upvote and resteem done

Nice post, upvote resteem done, please check.

Upvote resteem done

Thanks, upvoted

sir you are the best stock master i always appriciate your efforts on market @upvote and @resteemd

This looks scary!

Terimakasih atas postingan ini yang sangat bermanfaat buat kami yang masih pemula di steemit ini dan kami berharap anda bisa membantu kami supaya bisa lebih manjur di steemit ini sekali lagi terimakasih kepada @marketreport

Upvoted, good post as per usual.

You might find this post on Shadow Government Stats interesting.

Sadly, few have a clue about the implications of this chart...wonder what the most recent Shadow Stats reveals now, 24 days later than this post @procrastilearner.

Dollar and bonds are diving and how long it will last, stocks will rise.

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I've been seeing retail investors piling in here at the highs, that is a good sign a top is near. Good stuff!

Really thanks sir .. its really very good news ..
Upvoted and resteem done sir ..

Not sure you can call what will be GLOBAL SYSTEMIC COLLAPSE a "correction"...but okay ;)

global-economy COLLAPSE.jpg

Re-streemed and upvoted dude! Have a great day...

Don't worry #robinhood we have a plunge protection team. lol

really perfect post uploted and resteemd

Resteemed sir !

lovely post like

Indeed we are ready for correction. With Trump in office and the Federal Reserve both wanting to push the market higher as the illusion I don't know how long this will continue.

Great post as usual! I think we could see some interesting things over the next few months. Greg The Man Mannarino!

Very helpful information.
Thanks for sharing this helpful information. @marketreport

resteem complete

Great post! Well substantiated information

upvoted and resteem ..done

Another great insight from you Greg always good update.
Upvoted and resteemed.

Thanks so much for this update. I have resteemed this post.

Thank you Gregory!

Greg junk bonds yield would fall, not rise

resteemed sir!

Very nice vost,,, good job. 👍

Very nice to be doing a post you thank you for sharing a nice post in us

resteem finish

upvotev and resteem

Things are about to get really really interesting.... all that low volatility has been slowly coiling tighter & tighter getting closer & closer to maximum density & 🎇🎆

Man, @marketreport, I hope there is not a major correction but I believe that we are due for one. I unfortunately lost about 10-15% of my portfolio value (only about $5K, but still hurts) on Thursday and Friday with my 3 major Marijuana stocks I invested in - TWMJF, APHQF, and ACBFF. Any thoughts on this space?

That's a great trading and investing way thanks @narketreport