Reported 16 days ago
In a climate of stock market gains, three predictive metrics indicate a possible downturn. The S&P 500's Shiller P/E ratio is significantly above historical averages, suggesting overvaluation. Additionally, a record long yield-curve inversion hints at an impending recession, with the NY Fed forecasting a high probability of economic downturn. Lastly, a decline in the U.S. M2 money supply, unprecedented since the Great Depression, raises concerns about consumer spending, further heightening the risks for the stock market.
Source: YAHOO