Elites Warning About a Crash & Wall Street Correction Looms
The Elites Are Privately Warning About A Crash –Zero Hedge
“Many everyday citizens assume powerful global financial elites operate behind closed doors in secret conclaves, like the scene of a Spectre board meeting in the recent James Bond film. Actually, the opposite is true. Most of what the power elite does is hidden in plain sight in speeches, seminars, webcasts and technical papers. These are readily available from institutional websites and media channels….Mohamed A. El-Erian is a bona fide member of the global power elite…Yet he writes in a fairly accessible style on the popular Bloomberg website. When El-Erian talks, we should all listen. In a recent article he raises serious doubts about the sustainability of the bull market in stocks because of reduced liquidity resulting from simultaneous policy tightening by the Fed, European Central Bank (ECB) and the Bank of England. He says stocks rose on a sea of liquidity and they may crash when that liquidity is removed. This is a warning to other elites, but it’s also a warning to you….what does the head of Singapore’s GIC say about markets today? Lim Chow Kiat, CEO of GIC, warns that ‘valuations are stretched, policy uncertainty is high’ and investors are being too complacent….Meanwhile, the typical American small retail investor probably has 60% or more of her 401(k) in developed economy equities, mostly U.S….The solution to this is to allocate 10% of your investable assets to physical gold or silver. That will be your insurance when the time comes.”
Wall Street bracing for ‘significant correction’ –CNBC
“When it comes to both fiscal and monetary policy these days, Wall Street looks to be expecting less. Respondents to the CNBC Fed Survey have marked down their expectations for Federal Reserve rate increases and for fiscal policy stimulus from Congress and the Trump administration. And there’s growing worry that the stock market could be set up for a fall. ‘Asset markets are very highly priced and investors are complacent,’ said Mark Zandi, chief economist of Moody’s Analytics. ‘The pre-conditions for a significant correction in markets are coming into place.’ The 44 respondents to the survey, including economists, fund managers and analysts, unanimously believe the Fed won’t hike interest rates at its meeting this week….Respondents also are dialing back what they expect from the Trump administration and Congress….’The Trump trade has evaporated,’ said Neil Dutta, head of economic research at Renaissance Macro Research.”
Stocks will lose value significantly is what this means…my comment.