Shares just hit the ‘Death Line’ on the top of the dot-com bubble, veteran investor Bill Smead warns

• Bill Smead warns that the stock market is reverse.

• Smead shared a table showing the S & P 500, which hit the S & P 500 resistance trend.

• Smead also references to the careful cash position as a sign of the potential market problem in Warren Buffett.

Smeam Smead The current stock market does not know how much the market rally can last, but the veteran investor thinks this is a particularly sensitive place.

Smead on July 15 – Smead of Smead Fund –Smvlx) In the last 15 years, he beat 96% of his peers, shows Morningstar information – Several in the 1960s, the inflation has shared a table that demonstrates a regulated S & P 500 return.

The above trend line is resisted in 1966 and in 2000 in the summit of the two main market. S & P 500 Inflation adjustable returns are followed by a significant adjustment in these cases.

In recent weeks, the market has been touched on the third time since the 1960s, as in the S & P 500 in about 500 heights, always rose to heights.

There is no rule that the market rally cannot be violated higher, especially economically, such as inflation, consumption costs and unemployment. However, to make sure that this is a pre-reminder about how the current environment is pretty and the SMEAD is based on the market for disaster for disaster, which has a very weak return in ten years.

“It didn’t say when, but this is how great it is, it says,” he said.

“You can’t catch your breath until it is broken,” he said. “This is not a question whether it is.”

Recently, the market’s effective returns are managed by the growth shares, especially seven Mega-Cap technological companies. Thus, Smead is not surprisingly surprising to endure the prospects of a value investor’s growth shares.

The change of value from the value will benefit the SMEAD fund, which is 10.6% decreased in the last 12 months. The Holding of the SMEAD value funding is the most concentrated in energy, consumer periodic and finance.

However, Smead’s effective long-term trek record shows that the record can become anything. Another popular measures of the investor Euphoria also show that the history of the market is a rich level. For example, the shiller trigger-adjustable price-saving rate is always close to the heights.

Smead also showed a careful approach to Warren Buffett in recent years, as a warning sign that can be aware of work in the market, a careful approach to a record that is a record cash position. Buffett warned the husband in the market to dot-com bubbleHe takes him to take a more consategist position in his portfolio. As a result, his performance suffered a year leading to the summit of the bubble, but Buffett broke the return of S & P 500 during the market for several years.