In an article that I wrote on April 13, I urged readers of my Moneynews.com blogs to get out of stocks because my research had indicated at that time that stocks would soon peak and then pull back sharply. Only eight trading days later — on April 23 — the S&P 500 Index did peak; and since then it’s lost 12 percent of its value as of 11 a.m. (Eastern time) today.
With my proprietary investment model registering last Thursday its first “sell” signal since July 2007, I’m convinced that stocks are headed even lower during the weeks ahead.
Specifically, my models indicate that the Dow Jones Industrial Average will fall to around 9,200 within the next six weeks.
ALERT: Frazier: Stocks Rolling Over. Get Out Now.
That same model, which correctly forecast the December 2007 to June 2009 recession, also indicates that economic growth in both the United States and numerous foreign countries will slow considerably during the second half of this year and that several European countries are in danger of falling back into a recession.
I therefore urge you to stop listening to the so-called Wall Street “experts” who have been telling investors that worldwide economic conditions are continuing to improve and that stock prices are headed higher.
Note from Moneynews:
If you’d like to be kept abreast of actual economic and financial developments and their longer-term effect on securities prices (rather than relying on misrepresentations like the one discussed above), try a free sample of David’s investment advisory service, The ETF Strategist.
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About the Author: David Frazier
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