Barron's: Why The Stock Market Won't Crash

With the markets set to overtake their old highs, many investors are wondering if a crash can be far behind, according to this week's

cover story. See the five reasons that Barron's thinks the stock market is unlikely to crater any time soon, such as low oil prices and rising home prices. "

" by Gene Epstein says that even though the bull market is now more than seven years old, stocks still have room to run. There is no need for investors to flee to safety, no need to worry about an imminent crash. Is the stock market headed for another crash? Of course it is, says Barron's, just not any time soon. The article points out that almost all market crashes are accompanied by a recession, and Barron's explains why the odds of recession currently are quite low. The article also takes a look at how a market crash is defined. Is it by one-day plunges like Black Monday of 1987 or the famous crash of 1929? If that is the case, says Barron's, then another such crash is not due for another 29 years. See how home sales, yield curves and oil prices all factor in to Barron's rationale for no stock market crash in the near future. Possible economic downturns, the level of consumer spending, and even a potential Trump presidency, also influence the calculations. And if a crash or recession is unlikely, just what is the outlook for the stock market? Is it time to get defensive, or has the bull further to run? The article includes a graphic representation of the relationship between market crashes and recessions over the past 35 years. Another graph compares dividend yields since 2007, while others offer a look at everything from home sales and home prices to Treasury yields and oil prices.

The latest Alternatives Monthly report provides a look at how MIT Professor Andrew Lo uses behavioral science to build alternative funds strategies at AlphaSimplex Group. As chairman of that group, Lo oversees $7 billion in five mutual funds. In the article, he discusses his research on keeping investors calm, the potential pitfalls of liquid alternatives and his efforts at curing cancer. In addition, see what Barron's feels are the prospects for five real estate investment trusts (REITs), whiskey maker

,

under its new chief executive, and commercial real-estate giant

.

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