Assets bubble burst in 2016 ?

Roubini : We're in an asset bubble and it won't pop until 2016

Roubini, "Next year we'll see economic growth and easy money. This frothiness that we've seen in financial markets is likely to continue from equities to credit to housing." He believes that valuations in some markets are already stretched and will continue to stretch until seeing a shakeout around two years down the line, in 2016.

Click 'It won't pop until 2016' for the report.

Dow (17,900)

Dow is forming its minor wave ii of mini wave 5. If the magnitude of mini wave 5 is the same as that of mini wave 1, mini wave 5 may end around 18,300 level. Will that be the end of wave (xiii) ?

The % gains for wave (i), (iii), (v), (vii), (ix) and (xi) averaged about 15%. Wave (xiii) so far has gained about 11%. If it can move up to 18,300, wave (xiii) will gain about 13.5%. It is possible for wave (xiii) to end there.

If Roubini is right and the market can last for another 2 years, it is possible that the next pullback after wave (xiii) is the major wave (6) correction of around 15%. However, if the next pullback is less than 8%, then it is more likely to be the wave (xiv) and major wave (5) has not ended yet, it is continuing its run with wave (xiv), (xv), (xvi) and (xvii), the next possible ending point for major wave (5).

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