IPOs at Record Levels Often Signal  Stock Market Tops

ByBrad Lamensdorf

IPOs at Record Levels Often Signal  Stock Market Tops. As the chart below shows, an estimated $60 billion in initial public offerings that are headed for the stock market this year could be an all-time record.  That is raising eyebrows for many astute market veterans because historically when IPOs flood the market what follows are big declines. …

Low Dividend Yields Are Another Stock Market Warning Signal

ByBrad Lamensdorf

Low Dividend Yields Are Another Stock Market Warning Signal. As stock prices rise, obviously dividend yields decrease as a percentage of the price you would pay. It is worth pointing out that over the last 100 years, half of the returns in the stock market have come from dividend yields. So, it follows that low…

As Stock Market Keeps Rising, Sentiment Gauges Keep Ringing Alarm Bells

ByBrad Lamensdorf

As Stock Market Keeps Rising, Sentiment Gauges Keep Ringing Alarm Bells. We use investor sentiment indicators as historically accurate contrarian indicators on the direction of the stock market.  Those indicators have been sending increasingly worrisome signals in recent weeks as the stock market keeps going up to new highs. Why the disparity? That’s because it…

Stock Market Sentiment Gauges Continue to Flash Warning Signals

ByBrad Lamensdorf

Stock Market Sentiment Gauges Continue to Flash Warning Signals.  We use a variety of investor sentiment gauges as contrarian indicators  to help us determine the stock market’s direction because most investors are historically wrong.  As we’ve been reporting for  a number of weeks,  these historically accurate indicators overwhelmingly have been sending up warning signals for…

Investor Sentiment Turns Euphoric over Stock Market Outlook: Watch Out!

ByBrad Lamensdorf

Investor Sentiment Turns Euphoric over Stock Market Outlook: Watch Out!  We use investor sentiment as contrarian indicators for the direction of the stock market. The Citigroup Panic/Euphoria Model of investor sentiment is yet another indicator that is warning the stock market is in dangerous territory (see chart).  The level of investor euphoria recently has been…