Epic 40% Market Plunge Is Coming

Epic downturn is here, brace for 40% market plunge –Stockman/CNBC
“David Stockman warns a 40 percent stock market plunge is closing in on Wall Street. Stockman, who served as President Reagan’s Office of Management and Budget director, has long warned of a deep downturn that would shake Wall Street’s most bullish investors. He believes the early rumblings of that epic downturn are finally here….’No one has outlawed recessions. We’re within a year or two of one,’ he said Thursday on CNBC’s ‘Futures Now.’ He added that: ‘fair value of the S&P going into the next recession is well below 2000, 1500 – way below where we are today.’ ‘If you’re a rational investor, you need only two words in your vocabulary: Trump and sell,’ said Stockman, in a reference to President Donald Trump. ‘He’s playing with fire at the very top of an aging expansion.’ According to Stockman, Trump’s efforts to get the Federal Reserve to put the brakes on hiking interest rates from historical lows is misdirected. ‘He’s attacking the Fed for going too quick when it’s been dithering for eight years. The funds rate at 2.13 percent is still below inflation,’ he said. Stockman cited the trade war as another major reason why investors should brace for a prolonged sell-off.”