Today, in an article entitled  “Money moves 5 doomsayers are making now” MarketWatch.com’s  Wallace Witkowski paints a dark & gloomy picture of the state of today’s stock market from the eyes of a growing group of “doomsayer” investors:

…The consensus among this group is that the rally is not sustainable — just another big party before an even bigger hangover. They see stock prices as being artificially inflated by Federal Reserve policies of quantitative easing and low interest rates, and that to put out the fires in Europe, the European Central Bank has gotten in on the act.

But, these strategists say, while these monetary drugs are palliative to markets, they require bigger doses for progressively dwindling results and will eventually fail.

Also, they believe the market’s valuation is stretched beyond what the fundamentals justify. Government policies are encouraging leveraged institutional investors and hedge funds to go long on stocks, they maintain, while cash-flush companies buy back outstanding shares from cash-strapped individual investors.

Individual investors, not incidentally, are engulfed by debt, the doomsayers point out. As they see it, consumers struggling to unwind debt are getting squeezed by higher food and energy costs. Accordingly, they’ll have even less disposable income to sustain corporate profits, the pessimists say. And one outcome these forecasters can all agree on is that the stage is being set for a big, ugly global stock-market crash…

Wallace’s article (see here) is the second MarketWatch.clom piece within a one-week period that asserts that a global stock market crash is looming on the horizion.