S&P 500

When Goldman warned on Friday that a "big drop" in the market is possible before the S&P hits the firm's year end price target of 2,100, one of the bearish reasons brought up by the firm's chief strategist David Kostin is that stocks are now massively overvalued. In fact, according to Goldman , while the aggregate market is more overvalued than 86% of all recorded instances, the median stocks has never been more overvalued, i.e., is in the 100% valuation percentile, according to some key metrics such as Price-to-Earnings growth and EV/sales.

Authored by Jesse Felder of The FelderReport.com,

After recent (and in some cases very dramatic) bearish conversions by the likes of JPM, BofA, Citi and UBS, the only bank that steadfastly held a bullish view on stocks during the recent market squeeze higher was Goldman Sachs.

Not any more.

On Thursday, Goldman strategist David Kostin appeared on CNBC, where he too join the bearish crowd and said that based on the threat of margin collapse ("35 out of 53 tech companies had margin declines") and record-high stock valuations this year, it's time to play defense in "a tough market."

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Another week of choppy market action and the end result was a move to “nowhere.” As I stated previously, the current action is either a consolidation process or a topping process. To wit:

“First of all, it is worth noting that despite all of the recent excitement of the markets advance, it remains extremely confined in a sideways trading range. This can either be good or bad news.

 

Scared... you should be...

These guys were...

Can it get worse?Flight 666 to HEL on Friday 13th pic.twitter.com/sZeaSFpVCD

— Mike (@FR24mike) May 13, 2016