The stock market is “bizarrely” overvalued, and a major correction is imminent, according to Paul Dietrich, the chief investment strategist at B. Riley Wealth.
What Happened: Dietrich, in a conversation with Yahoo Finance On Wednesday, pointed to several indicators in the market that are signaling a collective warning for stocks. The price-to-earnings ratio of the S&P 500 and multiples are at levels reminiscent of the dot-com bubble crash, he said.
“Every single indicator seems to tell us we’re in a historic, historic bubble,” Dietrich said.
“It’s hard to look at that and say that we’re not going to see a major, major correction coming. Now is not the time to be putting new money in the market,” he warned.
The most significant indicator of an impending correction is the movement of “smart money” investors out of the stock market and into safer cash equivalents, Dietrich said. He highlighted recent stock sales by billionaires like Jeff Bezos, Warren Buffett, and the Walton family as a sign that big investors sense an impending market correction.
See Also: Bitcoin, Ethereum, Dogecoin Register Little Change Amid Bullish Momentum: Analyst ...