The world is changing, and faster than usual. These changes will be good for some companies and sectors, a few examples of which I suggested on Friday. Today, I fear I must to the responsible thing and discuss the other side of the coin, the one that bears the visage of the reaper, for despite the season, a great many stocks are now ripe for the harvest.
Is the market overvalued? The answer is yes, some of it is. We are overdue for a bull-market price correction, which is to say, a price drop which will happen quickly and un-happen just as quickly. That isn't the problem. The problem is that by having risen so rapidly, due in large part to the huge influx of freshly printed cash, stock indices have essentially borrowed from the gains would otherwise have made over the coming months.
The actual size of the coming correction may be important to banks and others with strict capital requirements, but it isn't really important to individual investors. What is important is to understand that the same issues that have inflated the market have been inflating the value of its losers as well as its winners, and for many, there looks to be quite a reckoning coming.
I can't guarantee that the stocks named here are losers, but I do know that powerful trends are working against them. Do your own research, and tread carefully, because death is coming for many companies, and it's going to be hell on their shareholders.
This article was originally published on MarketIntelligeneCenter.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.