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7 Strange But Telling Signs The Stock Market Is Due For A Sell Off

Facebook, Inc. NASDAQ:FB, International Business Machines Corporation NYSE:IBM - 7 Strange But Telling Signs The Stock Market Is Due For A Sell Off

This article was written by Jim Pearce, CIO of Baton Investing.

With the U.S. stock market at record highs after six years of continuous growth, investors are becoming wary of an impending market correction. They're looking for ways to protect themselves and their money from a crash.

While there is no way of knowing when a correction will occur, industry experts can provide us with insight. Here are seven signs that a correction is coming from Jim Pearce, Baton Investing's Chief Investment Officer.

#1. Your Uber driver is day-trading the stock market while waiting at a red light.

This is a strange, telling sign that doubles as a true story. In fact, not only was the Uber driver day-trading the stock market, he was -– until recently –- an executive officer with a solar energy company. A steep drop in oil prices has disrupted the economics of alternative energy sources to the extent that many firms are downsizing and shutting down plants until oil prices get back up above $80 per barrel.

#2. A company that doesn't make anything and is free to use becomes the 10th most valuable publicly traded company in the United States.

That company would be Facebook, which moved ahead of Walmart earlier this year when its total stock market capitalization reached $245 billion. Think about that for a minute. Facebook FB 1.37% is now more valuable than long time blue-chips stocks such as IBM IBM 0.18%, General Electric GM 0.82%, and Verizon Communications VZ 0.02%. The company is 12 years old and has been trading publicly for only a few years, yet is considered a...


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