Marvin Clark

The Market Bubble Is About to Pop

Let's not forget that the stock market has increasingly become a casino detached from the economy. The severe market drop in 2008 was the market's fear of the soured credit markets. The same macroeconomic trends, that existed in 2008, are in place in 2009 yet the major averages up some 50% from the March lows.

Once the intoxication of cash and momentum wears off, this market will head lower. The continuing contraction in the economy will exacerbate the next leg down, too. The next decade will witness the S&P 500 bounce between 600 and 1,500 several times.