Market Technician Projects 2019 Stock Market Peak

Financial Sense Newshour recently spoke with well-known market technician Robin Griffiths to discuss the outlook for FAANG stocks, the ongoing global slowdown, and when he is projecting a market peak for this cycle.

Here's what he had to say...

“I think what has ended is the period of time led by the FAANG [Facebook, Apple, Amazon, Netflix and Google] stocks—that's over now. That is well and truly over. We're not saying the FAANGs are going to go bust or anything like that but what they’re likely to do is come down to a valuation basis that makes sense…where their business is valued on a way that is sustainable and they probably start paying dividends and all those sorts of good things. And [remember] we've seen this before, back in the 60s it was the NIFTY 50; this time around it's the FAANG stocks."

Is There a Storm Headed Our Way?

"I think you’ll find that [investor] confidence is now at a very low level even though the U.S. economy is in pretty good shape—certainly relative to other economies it’s in very good shape. The confidence is nonetheless gone. There’s a willingness to sit on maximum amounts of cash or to buy only very cautious investments and we already had what was the longest running bull market in recorded history. We all knew we were on borrowed time. It wasn't going to last forever or even much longer, although the U.S. market will probably get into next year before the final, final high.

But the rest of the world is already no longer in a bull market. The rate of growth of the global economy is clearly slowing down [though] from pretty good numbers. India is still growing at about 8.0 percent, China, even in its slowdown, formally is growing at about 6.0 percent and the USA is growing at 4.5 percent, which is a pretty good number for a thing the size of the USA. But in Europe, even the powerful German economy is not growing anymore.

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