FYI - "Be prepared for a 10% to 12% dump in US markets"
Itfs sure been an awesome year in the stock markets. By this week, the benchmark S&P 500 index (SPX) had soared 62.3% from its despair-laden March low and 21.6% year-to-date. Naturally the gains have been fantastic in this dream environment for traders, with nearly all sectors relentlessly powering higher.
Despite such a bountiful profits-rich environment, a vexing problem is festering below the rosy surface. Virtually all professional investors and speculators, despite doing their best to ignore this elephant hiding under the rug, are well aware of it. Quite simply, todayfs stock markets are very overextended. They have come too far too fast, with insufficient counter-moves to keep sentiment balanced......
