Value investors are pounding the table that the stock market (SPY) is already in bubble territory not unlike 1999. Indeed they are right about the lofty valuation levels. But they are wrong that it’s time to get ready for the next bear market to emerge even with rising inflation…even with Russia/Ukraine crisis. Check out Steve Reitmeister’s game plan to ride the bubble up and then parachute out at the right time. Read on for more.
Spoiler Alert: Yes, we are in the midst of another stock market bubble.
The proof is quite evident in 5 key valuation metrics showing that we are at or above the levels hit during the tech bubble of the late 1990’s. And that is even after the recent correction brought on by the Russia/Ukraine crisis.
This leads to many questions:
What is keeping stocks aloft?
How long will this bubble last?
What is the trading plan to ride stocks higher?
And how to parachute out before the bubble explodes?
I answer these questions and more in my latest presentation recorded live at the MoneyShow Virtual Expo this past week entitled: Is THIS Another Stock Market Bubble?
I start by reviewing 5 classic valuation metrics which show, beyond a shadow of a doubt, we are very much in bubble territory. In fact, most of these measures are even worse than experienced during the last valuation bubble in 1999 leading to the bear market that began in 2000.
Next we talk about the recent detour from the bubble brought on by the Russia/Ukraine crisis. This includes historical perspective on how military conflicts actually turn out to be bullish for the stock market even after the initial fear that sparks a sell off.
Yes, I know that many are reading this article and assume that an existing bubble means to run for the hills now. However, there is good reason to believe there is another 12-24 months of further price upside to go before the bubble bursts.
So we will talk about the strategies to ride this bubble higher and prepare to parachute out before it explodes. In fact, there is one key metric I can share with you that pretty clearly points out when the bull party will be over and the bear will come out of hibernation.
It’s true that the rising tide raises all boats. So most investors will enjoy gains from the bubble growing ever larger. However, I do share my “Trading Plan to Outperform” by laying out key trading strategies and industry groups to top the market in the year ahead. This analysis includes the stocks to avoid in the coming year.
This culminates in a preview of my top 10 stocks and 4 ETFs for today’s market. The one’s I am recommending to investors to stay ahead of the pack.
All this and more awaits you in this very concise presentation: Is THIS Another Stock Market Bubble?
SPY shares rose $0.20 (+0.04%) in after-hours trading Thursday. Year-to-date, SPY has declined -4.86%, versus a % rise in the benchmark S&P 500 index during the same period.
About the Author: Steve Reitmeister
Steve is better known to the StockNews audience as “Reity”. Not only is he the CEO of the firm, but he also shares his 40 years of investment experience in the Reitmeister Total Return portfolio. Learn more about Reity’s background, along with links to his most recent articles and stock picks.