Tags: Hulbert | Martin | bull | market

Hulbert: Alibaba's IPO Might Presage End of Bull Market

By    |   Thursday, 25 September 2014 12:21 PM

Many investors grew more enthusiastic about stocks after Alibaba's wildly successful initial public offering Friday, which saw the Chinese Internet titan's share price jump 38 percent.

But, "Wouldn't it be ironic if this great bull market ended Friday, on the occasion of Alibaba's record-setting IPO, the largest in history?" Mark Hulbert, editor of Hulbert Financial Digest, writes in his MarketWatch column.

Many financial advisers whom he tracks are suggesting just that.

"Those advisers point out that history's most significant market tops have often been accompanied by high-profile events that prompt the average investor to overcome any residue of skepticism they may be harboring," Hulbert says.

Hayes Martin, president of Market Extremes, an investment-consulting firm, has been warning of a market top since late July. He bases his call on market sentiment, Russell 2000 index valuations and market divergences.

He sees a 13 to 18 percent decline coming for large-cap stock indexes, such as the S&P 500, and 20 to 30 percent for smaller stocks, such as those in the Russell 2000, Hulbert writes.

However, Martin notes, the declines will be "short and sweet" rather than "long, deep and drawn out." And then the bull market will be back.

Money manager John Tobey also thinks the five-year bull market is in trouble.

"The seemingly non-stop stock market rise looks like it is ending," he writes in an article for Forbes. The S&P 500 and Dow Jones Industrial Average hit record highs Friday.

"Ever-weakening fundamental factors combined with ever-worsening technical risks appear to have finally grabbed hold," Tobey notes.

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Many investors grew more enthusiastic about stocks after Alibaba's wildly successful initial public offering Friday, which saw the Chinese Internet titan's share price jump 38 percent.
Hulbert, Martin, bull, market
259
2014-21-25
Thursday, 25 September 2014 12:21 PM
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