Financial Markets Investments Question & Answer, Are we about to witness a significant crash in the US equity market?

this is a homework question will be treated as an exam, the answer should not be copy paste and the information should not be general, try to be analyzed as much as you can, I will attach an audio that describes the requirement

https://drive.google.com/open?id=1whcIkO7tweGiFpWrT18fBVx19mQ8VJlv

1. Introduction:

 

Since the beginning of the semester, we covered interest rates and their impact on the economy and the equity market. We also looked at the yield curve and its shape, key economic indicators, and equity valuation. Throughout the coverage of the topics above, we also covered key Bloomberg functions that are VERY helpful in seeing the “whole picture” and the inter-relationship of various variables simultaneously.

 

1. Your task:

 

Are we about to witness a significant crash in the US equity market?

1. Argue and bring your supportive evidence that we will witness a crash. Use top-down macro analysis to support your argument. Use statistics, Bloomberg, graphs, technical, fundamental, and relative value analysis. List the evidence from US macro indicators that support this camp.
2. Argue that the party is coming to an end. Use top-down macro analysis to support your argument. Use statistics, Bloomberg, graphs, technical, fundamental, and relative value analysis. List the evidence from US macro indicators that support this camp.
3. Equity analysis:
   500. Pick a stock and its closest competitor (e.g., PFE and MRK) with more than 10 years of price history. We would like to cover all sectors in S&P 500.
   501. Provide your top-down analysis of the sector

• Conduct a bottom-up fundamental analysis of your stock and its competitor

1. Comment on the current trading price; do you see it overpriced, fairly priced, or underpriced? Support your answers quantitatively.
2. Conduct technical analysis, the stock vs. its own history. What the current price and its trend is telling us? Is it supported by fundamentals or technical, or both?
3. Conduct relative value analysis vs. S&P 500 and vs. its competitor. How does it fair? Overvalued, undervalued, or fairly valued?