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Next stock market crash: Evidence of a Y2K-like collapse is piling up



Year 2000 millennium Y2K New Year's Eve Times Square

  • Today’s market is facing a growing number of alarming
    comparisons to the dot-com era.
  • The most recent observation, from Leuthold Group,
    relates to the jagged, uninspiring recovery by US stocks since
    their 11% correction earlier this year.
  • Other bearish parallels — specifically those relating
    to valuation — tie into arguments raised by the reputed market
    bear John Hussman, who sees a 67% stock-market drop

As stock-market valuations have swelled
to within striking distance of all-time highs, many experts have
been hesitant to compare the situation to the tech bubble.

Not Leuthold Group.

In fact, to those at the Minneapolis-based firm, the comparisons
keep piling up.

Leuthold’s latest observation comes from recent research, titled
“Y2K All Over Again?” The report assesses the S&P 500‘s difficult and erratic
recovery from its 11% correction suffered in February. It notes
that the choppy, six-month rebound since then has eerily mirrored
the five-month upswing that followed the equity meltdown of
March-April 2000. …


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