The signs of the coming Stock Market Crash.

What are these signs, apart from Cycle theory graphics? In fact, is Cycle theory valid? Cycle theory is based on the known fact that history (meaning financial history) tends to repeat itself. After a while, people forget how they had been fleeced and are willing to try the things that lead to them being fleeced. There are established principles of safe investments, but speculators wait for the days when they can crash the Market and make a financial killing.

So, cycle theory points to a Stock Market crash in 2010 and a Bear Market that will last through 2011. This correlates with the cycle of politics we are experiencing now. Another sign of the coming disaster is that corporate insiders are selling stock like there is no tomorrow. In fact, if Obamabots keep control of Congress beyond 2010, there isn't. Hope for tomorrow. A third sign of the coming disaster is the developing troubles in the rest of the housing and real estate market which I chronicled in the previous post. The fourth sign is the gathering inflation and credit crunch along with the decrease in private spending.

The value of American corporations is decreasing. This IS THE POLICY of the Obama regime. The price to earnings ratio has already risen to 18, higher than the average 16. A further 20% rise in stock value, without increase in earnings, will set the stage for a collapse.