XOM - Market Living On Borrowed Time

2024-06-20 14:34:55 ET

Summary

• Two of the three major elements needed for a substantial market sell-off are currently in place.
• Stocks are overvalued viewed from a variety of metrics, and investor complacency hasn't been this high since before the pandemic sent the markets crashing.
• The only thing missing to trigger a bear market is a significant risk emerging to sideswipe investors and start a needed re-valuation of the market.
• We discuss several major risks to stocks and their shareholders that investors are currently ignoring at their peril in the paragraphs below.

History doesn't repeat itself, but it does rhyme .”? Mark Twain.

I started investing in the mid-1980s. It didn't take long to get a lifelong lesson on what happens when investors get far too complacent about the markets. Less than 18 months after I started buying stocks regularly, October 19, 1987, shocked the markets to their core. That was the day, known as Black Monday , that the Dow Jones Industrial Average (DJI) crashed by over 22% in one day ....

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