Warning signs before the storm 🌪️

Stock market runs faster than the economy by about 6 months, unless it is a sudden event like a "black swan" incident.
Here are some signs of a storm:
The 10-year US Treasury bond yield exceeds 3%, higher than the weekly interest rate of listed companies.
The 10-year US Treasury bond yield is lower than the 2-year US Treasury bond yield, resulting in an inverted yield curve.
The average PE ratio of the stock market exceeds 40 times, indicating that many stocks are overvalued.
The stock market trading volume is increasing.
Everyone is all smiles, showing off how easy it is to make money in the stock market, a major correction is not far away.
The index keeps hitting new highs, with many stocks taking turns to stage fireworks, constantly introducing different themes, causing stocks within the sector to rise.
When several of the above signs appear, it is important to consider storing provisions for a rainy day, waiting for the arrival of a bear market, and being greedy when others are in panic.

Based on the analysis of historical data, the stock market cycle is approximately around 10 years.

When newly built houses remain unsold and a large number of auctioned houses emerge in the market, this phenomenon indicates that ordinary people cannot afford loans, hinting that an economic recession is approaching. If the economy falters, the stock market will also be negatively impacted.