Economists and investors are warning about a disastrous stock market crash. David Stockman, former budget director for the Reagan White House, claims that an economic collapse is right around the corner. Scott Minerd, who is the Chairman of Investments and Global Chief Investment Officer of Guggenheim Partners, states and warns individuals that: "The markets are potentially on a collision course for disaster..... once we reach a peak we'll probably see a 40% retracement in equities."
Other Statements were made regarding the stock market. Saying that our economy is the strongest it has been in 40 years and its "unsustainable" and bound to crash, "we can predict a market loss on the order of 60%" (Hussman), and Ted Bauman claiming that a 70% collpase isn't just moving, but it's already here. Bauman has correctly predicted the financial crashes of 1999 and 2007 and he is already preparing for an upcoming financial crash.
What do you think? Is Bauman right? Should we sell tomorrow? What should we do to prepare?
https://banyanhill.com/exclusives/70-stock-market-crash-to-strike-august-1-economist-warns/?z=1000790
3 comments:
This is very interesting that he would predict such a huge downturn in the near future. Im curious what information he is using to back the claim if he is willing to put such a high and specific number of the degree of market pull back. If he predicted the 1999 and 2007 crashes correctly I would be interested to see how many other crashes he "predicted" that never happened.
It looks as if something is incoming to the market. However, I wonder what is signaling them to believe that the correction will be so large. If a correction does start to occur, I am interested to see how Bauman responds to his prediction, or what advice he has to offer moving forward.
I'd echo the previous commentors want to see what he is basing his belief on. I think that anyone can argue that when a bull market goes on for a long enough time then they will soon see a correction. The most common market indicator of a correction, the yield curve, has not yet inverted and as such would suggest at least another 6 more months of a bull market.
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