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151 days

As stocks wobble, these two rarely-noticed measures say valuations are stretched - MarketWatch

1. S&P 500 futures are experiencing volatility with significant intraday ranges. 2. Concerns rise over high valuations amid potential economic downturn and corporate earnings impact. 3. Historically, earnings multiples and inflation have an inverse correlation, now diverging. 4. Current stock ownership levels may lead to negative wealth effects if earnings decline. 5. Upcoming triple-witching options expiration could amplify market fluctuations and uncertainty.

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FAQ

Why Bearish?

Current economic indicators point to potential overvaluation and risks of downturn. Historical instances, like the tech bubble, highlight similar patterns of overvaluation preceding corrections.

How important is it?

The article discusses significant market risks, making it highly relevant for ES00. Insights on valuations and potential economic impacts are critical for future trading strategies.

Why Long Term?

The assessment projects ongoing risks, suggesting protracted effects on market stability. Past scenarios indicate prolonged periods of overvaluation often lead to significant market corrections over time.

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