Get Over Here and Witness the Stock Market's Impending Doom!

The Netherrealm of Wall Street

Foolish mortals! I Scorpion have seen empires rise and fall. And I tell you now the U.S. stock market was a ticking time bomb long before these petty squabbles over tariffs. While you celebrated record highs a rot festered beneath the surface unseen by the naked eye. The S&P 500 may have reached its peak on February 19th but it was a mirage a trick of the light much like Quan Chi's illusions. Get over here and face the truth!

Magnificent Seven? More Like the Seven Deadly Sins!

These so called "Magnificent Seven" tech companies! They were the only ones holding up the facade fueled by your insatiable hunger for artificial intelligence. More than half of the S&P 500's gains in 2024 relied on these few. Carter Worth a seer in his own right warned of trouble brewing for months. "We've been in trouble for months and there's more trouble ahead," he said. Indeed the market was deteriorating like a soul consumed by the Netherrealm.

Falling Stocks Falling Fortunes

The decline of individual stocks has been far greater than the overall market's decline. Worth Charting reveals a grim picture: while the U.S. stock market was roughly 9.6% from its 52 week high the median U.S. stock was about 27.7% from its peak. The average stock? A staggering 32.3%! A clear bifurcation a divide as deep as the one between Earthrealm and Outworld! Some stocks rise while many more fall. It's a sign of weakness that cannot be ignored!

Hope and Hopium: A Deadly Combination

Ah optimism! The most dangerous of illusions! Investors entered 2025 expecting double digit earnings growth. Analysts predicted great success. But reality as always is far more brutal. The market leadership remained lackluster. Exuberance blinded them to the signs of impending doom! Bank of America even flashed a warning sign in December pointing out the S&P 500's overvaluation. Were they not listening or were they too arrogant to heed to the warning? Foolish!

Tech's Descent: A Slow and Painful Death

Even the mighty tech and semiconductor sectors once the darlings of Wall Street began to falter. Microsoft is down more than 21% since hitting a July peak and Nvidia is down 32% since January! The Dow Transports are down 24%. Each decline is like a spear piercing the heart of the market. But the most telling event? The Russell 3000's 150 day moving average fell flat signaling a structural bear market a beast ready to devour your investments!

Gold's Warning: The Flight to Safety

The price of gold soars! A clear sign of panic! Gold tends to rally during periods of decline in stocks and this year has been no exception. Global trade tensions have pushed bullion above $3,300 per ounce! Worth calls this gold rally "hysterical." In fact it has reached levels only seen four other times since 1975 leading to double digit declines in the following months. "This is a period of uncertainty...a period of geopolitical risk...of prospective stagnation," Worth warns. The fever is indeed broken and the market is about to receive a chilling spear of reality. Get over here! Or else...