Ask an expert: Is the market about to crash?

MSN Money Columnist Anthony Mirhaydari looks at the mixed signals coming from the stock market, jobs numbers, and central bank easing and wonders if we are sitting atop another bubble.

By MSN Money Partner Apr 15, 2013 2:07PM
Anthony Mirhaydari says the stock market is in an unusual and unsustainable situation -- it should have peaked in January, when consumers were retrenching amid higher taxes and gas prices. Job growth and industrial production have been disappointing recently and the stocks that have been doing well are defensive. 

He says the bull market is driven by central bank easing rather than economic fundamentals -- the idea that cheap money can solve all problems. He fears a return to stagflation (stagnation combined with inflation) and advises investors to be very cautious and to view gains as profit-taking opportunities.



  
109Comments
Apr 15, 2013 3:17PM
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What ticks me off is that we should be growing at 5 to 8%. The economic technology is there. What we don't have is the leadership, the guts, the intelligent and the moral structure to do it. Our greatest  enemy is our own government (the president, congress and the federal reserve), and we, the American people, created that government.
Apr 15, 2013 3:25PM
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Take profits before its too late. The fed is trying to patch a sinking ship with paper dollars. You can't have a healthy economy with astronomical unemployment and 47 million americans on food stamps.  And Obahma care is right around the corner.
Apr 15, 2013 3:00PM
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This is a TOTALLY FALSE MARKET.  It is being manipulated to take advantage of the small investor and within 3 months the Market will TOTALLY COLLAPSE. 
Apr 15, 2013 2:43PM
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Oh, we're definitely sitting on top of another bubble, for sure.  But as long as Bernanke keeps on blowing $85 billion/month into the economy, the markets will continue to rise.  It's only when Bernanke stops blowing and starts sucking will we have to worry.  Hey Bernanke, don't suck!

Apr 15, 2013 4:20PM
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I fail to see the connection between the Boston Marathon situation and the market losses, UNLESS, the true nature of the market is purely emotional and psychopathic. Consider the DANGER if this is true. You basically have invested your life savings with crazy people.
Apr 15, 2013 2:59PM
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I'm just going to say it like this... the Dow was under 7000 in 2008, then Bernanke started printing to salvage his banks. The Dow was almost 15000 before it started coming to its senses. Cramer thinks this is nothing. Basically, it had BETTER be something (like an 8000 point drop) if we will recover and restore prosperity. We don't need banks. we don't need a Federal Reserve. We don't need Wall Street. These pariah caused all of our woes. If you are in and STILL have your head in the sand, you are your biggest problem. There is NO substatiation for the current highs.
Apr 15, 2013 4:32PM
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The stock market is a tool for the rich to fleece the poor and do it legally.
Apr 15, 2013 3:25PM
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1.2% is a market crash, wow, I thought it was supposed to be 20% minimum

 

Apr 15, 2013 3:25PM
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Bernanke's stock market plunge protection team better slide down their greased fire poles out of the Bat-cave with suit cases full of printed money and start buying stocks!
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We are on the bubble, so who has the needle that does it in?
Apr 15, 2013 2:56PM
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scared us to cash in and Pay that huge tax , maybe NO
Apr 15, 2013 3:28PM
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Can the market crash with Ben pumping in 85B a month?
Apr 15, 2013 4:45PM
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QE1,2 and now QE3 Fed floating this wet dream and when they finally quit propping it up it will fall like a brick...to much cheap money and Wall Street and big banks are just sitting on their profits. No one wil invest in this economy or in this country no matter how much money you throw at them!

Apr 15, 2013 4:33PM
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this COUNTRY's been CRASHING since that Marxist pig obama has disgraced it with his bullshiiiit presence, policies and class envy rhetoric since 2008, all this 'phony' money being pumped into the market is an Armageddon in the makin' and everyone knows it, so are you kiddin??????
Apr 15, 2013 5:56PM
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Interesting that the selloff began well before the bombs went off. 

 

Oh there I go again.  I'll just put on my foil hat and I'll be safe.  

Apr 15, 2013 3:21PM
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Gee Anthony I wonder where all those people who have been telling you that you were full of it about this market about to crash at this morning? I don't see them here posting about how we cash and bond holders are idiots for having been sitting on the sidelines waiting for this day to happen. I know, I bet they are on there phone trying to reach their broker to put in sell orders....LOL!
Apr 15, 2013 3:57PM
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Oh the stock market going to suffer a tad here. Yeah the past few years the amrket has been like an ATM machine would the Fed keep replinishing the supply to the  stock market  ATM customers happy.

 

Perhaps they lost the key to the ATM and money being added is slowing so there will be less to withdraw!!!!!!!!!!!!

Apr 15, 2013 4:30PM
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Warren Buffet can literally make his own markets so it's not fair to compare him to the average investor. Panic is the Global Money printing press in trillions. But we haven't seen anything yet.

Folks that push systematic investing are basically telling you they know little or nothing about Markets. I get the idea of Dollar cost averaging of time in a Fundamental Sound Market. Problem is this isn't a Fundamental Sound Market. Cyprus is just the tip of the iceberg.

Apr 15, 2013 7:35PM
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The spring pullback is finally here, is anybody surprised, the markets followed the same pattern for 4 years now. I wouldn't be surprised to see the market rebound tomorrow 100 points, before sliding some more this week.
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