Indicators that suggest the market has become overextended or vulnerable to a correction
Image by Steve Bidmead from Pixabay
Excessive Investor Optimism (Euphoria) and Overstretched Valuations
Source Data: International Monetary Fund's
Weakening Economic Data and Market Breadth Deteriorates
Source Data: International Monetary Fund's
Increased Volatility and Sector Rotation
Image by Matthias Wewering from Pixabay
Inverted Yield Curve with Excessive Corporate Debt
Image by Matthias Wewering from Pixabay
Geopolitical or External Shocks and Central Bank Policy Shifts