JP Morgan with a warning note on US stocks – see a potential reversal

Say the same thing over and over and over and one day you are bound to be right.

A note from JP Morgan warns that US stocks are frothy. But that’s what they’ve been saving for a thousand points and more now.

Anyway:

• There is no safety net anymore
• market is positioned long
• Vix is at lows, potentially underpricing risks
• valuations look stretched
• economic growth is slowing
• credit spreads are extremely tight — this is as good as it gets

The analyst argues that both the stock market and the US economy are running out of time for a ‘goldilocks’ outcome.

Filing this way with Harry Dent, Albert Edwards, and the other perma bears.

This article was written by Eamonn Sheridan at www.forexlive.com.