Are We in the Final Wave of the Bull Market?

The bull market looks set to continue, but where are we in the business cycle, and what can we expect going forward?
This time on FS Insider, we spoke with Urban Carmel, lead writer at The Fat Pitch about his take on where we are according to Elliott Wave Theory and what he sees as the final leg of the bull market.
Final Stages of the Bull
Elliott Wave tells us that markets trade in a five-wave pattern consisting of three expansions and two contractions. We bottomed in 2009 and may now be in the final advance, which began February 2016.
There are three tell-tale signs to know if we are at that stage: macro data peaks and begins to decline, corporate profitability starts to deteriorate, and investor sentiment shows signs of euphoria.
During this phase, most investors go all in, Carmel stated.
‘When all those things come together, we typically see the end of the advance, and we get a more significant retrenchment,’ he said.
This is not an exact science, he noted, but rather is more of a rubric for thinking about the market.

This post was published at FinancialSense on 04/03/2017.