Michael Pento tells us beginning now and going into 2019, the stock market will be moving quite differently then the last couple years.
The U.S. stock market is 140% the size of the economy. Normally, it should be 60%. Pento tells us a revaluation is coming: a 50% decline in the stock market. This is healthy for the stock market’s long term viability, he says.
We are starting to see a sell-off right now. The Dow is at a level we haven’t seen since August. And the sell-off is world-wide. The global index FTSE recently dropped to it’s lowest point since April.
The nucleus of the bubble though is in the corporate bond market, Pento says.
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