Monday, March 17, 2014

US stocks heading to a blow off top

U.S. stocks may be headed for a blow-off as individual investors pile into the market after last year's meteoric increase. Peaks often are reached when everyone has been sucked in. Then, a major shock could force investors to focus on the slow global economy. 

With U.S. growth of only about 2 percent, it won’t take much of a jolt to precipitate another recession, which is long overdue by historical standards.

The investment climate would then shift from “risk on” to “risk off.”