4 Reasons You Should NOT Buy This Rally

The market appears to be bouncing. Last week my inbox was flooded with investment firms recommending I buy this dip in the market and load up on stocks for the rebound. Doing that’s been a great strategy over the past few years, they tell me.

And they’re right.

Without fail, each dip led to a big rebound in stocks, pushing indexes like the S&P 500 and the Dow to higher highs each and every time.

Except, in the last really big dip, it didn’t happen.

And it’s doubtful the market will achieve higher highs this time either. It’s either got to go up or down. It can’t stay in limbo forever.

So, I doubt we’ve seen a bottom. There are plenty of factors working against the market in 2016 that weren’t the case before. Let’s review those headwinds.

For starters…

This market is long in the tooth. The S&P 500 bottomed out nearly seven years ago. With a few hiccups, there hasn’t been a major scare until the start of 2016 when we got off to the worst start to the year ever.

Flash crashes don’t count.

Like I said, stocks quickly rebounded from every dip lower in recent years. Yet, we are about double the amount of time we’d normally expect to have a significant pullback in stocks. After this rebound, the next one might be it.

U.S. stocks are not cheap. It boggles my mind when Wall Street strategists say that stocks are reasonably valued or (gasp)… “cheap.” They clearly need to wipe the smudges off their rose-colored glasses.

Forget about earnings, because we know earnings are heavily manipulated. Before I’ve discussed how 90% of companies are using “adjusted earnings.” It’s bogus. And in my research advisory,