Mere hours after the presidential election results became clear, Wall Street responded with one of the largest spikes in stock prices every recorded. Shortly thereafter the Dow Jones hit 13,000 for the first time in history, and investor confidence is the highest it’s been since at least 2003.
With the hype around “making America great again,” there’s sure to be money made in the market as values and valuations continue to rise in the first quarter of 2017.
But one trading expert argues that what we’re seeing could lead to another market bubble with an even greater crash than the so-called Great Recession.
Leading up to the 2008 housing market crash, the economy was soaring led by over-valued real estate and credit default swaps being traded in the hundreds of billions on the global stock exchanges. A similar ‘market bubble’ could be on the horizon.
Among the potential bubbles stock trading guru Mike Galiga refers to are the deluge of foreign investment dollars flowing into the U.S stock market as foreign exchanges continue to struggle. Another bubble he sees forming is the massive wave of student debt in the U.S. that is increasingly unsustainable.
Galiga argues that certain telltale signs could present some massive profit opportunities even to amateur investors who know what they’re looking for. Here are just a few examples he points to:
*Chinese auto sales are down sharply over the last eighteen months and are approaching an historic low.
*U.S. student load debt has seen an exponential increase in the last few years.
*Japan has overtaken China as the largest buyer of U.S. debt as the Chinese yuan continues to fall.
Galiga revealed, “Keeping an eye on key indicators in the economy, investors can forestall massive losses and even see significant profits.”
Galiga detailed that there are many factors pulling on the global economy right now, including a possible rate hike by the Fed, declining economies in the Asian sector, Brexit and near-defaulting members of the EU, and other factors.