Shares in these industries are at larger danger of crashing over the subsequent 2 years
Published:
Mark Hulbert has long studied U.S. investment markets from the top down. This week he has a warning — and it is not about a broad stock-market crash, which investors might expect at this time of the year, since the 1987 and 1929 crashes both took place (or began) in October.
Instead, Hulbert looked at the history of crashes — defined as declines of at least 40% — for smaller groups of stocks, based on a study by researchers at Harvard University and the University of Hong Kong, which was updated in May.
Stocks in these two industry groups are especially ripe for painful declines over the next two years.