How Much Higher Can the Stock Market Go?

According to economic analyst Jesse Colombo, not much higher and potentially a whole lot lower! …In his article “Disaster is Inevitable When the Two-Decade-Old Stock Bubble Bursts,” in Forbes.com, he provides us with some controversial and thought-provoking research.

Laying out his case (which many charts and graphs to illustrate) Colombo argues that the stock market has been in a bubble for most of the last two decades.

According to his analysis, the impressive recovery we have seen in the last 5-6 years (S&P 500 prices have tripled) is not a recovery at all. He argues that we have witnessed instead a “Bubblecovery” fueled by artificially low interest rates and the Fed’s “Quantitative Easing” policies.

In other words, the economy is being manipulated to produce more bubbles which prevent a true market correction from ever happening. Thus the “recovery” only has positioned the market for a bigger eventual fall.