Pundit's Perspectives – Fri 8 Jan, 2016

80% Stock Market Crash To Strike in 2016, Economist Warns

Rick and I feel that this is not such an outlandish comment. How about you? Cory, the voice of reason, agrees that we will see declining markets this year but not to this extent. What do you all think?

Several noted economists and distinguished investors are warning of a stock market crash.

Billionaire Carl Icahn, for example, recently raised a red flag on a national broadcast when he declared, “The public is walking into a trap again as they did in 2007.”

And the prophetic economist Andrew Smithers warns, “U.S. stocks are now about 80% overvalued.”

Smithers backs up his prediction using a ratio which proves that the only time in history stocks were this risky was 1929 and 1999. And we all know what happened next. Stocks fell by 89% and 50%, respectively.

Former congressman Ron Paul didn’t mince words either. He warns that the stock market’s “day of reckoning” is fast-approaching. When that day comes, he doesn’t think it’s just going to be a correction; it will be “stock market chaos.”

But there is one distinct warning that should send chills down your spine … that of James Dale Davidson. Davidson is the famed economist who correctly predicted the collapse of 1999 and 2007.

Davidson now warns, “There are three key economic indicators screaming SELL. They don’t imply that a 50% collapse is looming – it’s already at our doorstep.”

 


Comments:
  1. On January 8, 2016 at 9:32 am,
    Bonzo Barzini says:

    We’ll be lucky if the DJIA drops only 80% in the next crash. Hang on to your gold and sleep well.

    • On January 8, 2016 at 11:42 am,
      MACDaddy (Jason) says:

      I WANT IT TO CRASH SO I CAN SHORT IT!!!

  2. On January 8, 2016 at 9:48 am,
    Bonzo Barzini says:

    Be sure to stock up on dark chocolate, raw honey, guns and ammo, and plenty of silver too.

    • On January 8, 2016 at 9:50 am,
      Big Al says:

      Dark chocolate Bonzo?

      • On January 8, 2016 at 10:46 am,
        Bonzo Barzini says:

        Make sure it is at least 70% cacao for the health benefits.

        • On January 8, 2016 at 11:47 am,
          MACDaddy (Jason) says:

          Got my vote on the chocolate!

        • On January 8, 2016 at 12:13 pm,
          Stephan B. Feibish says:

          and not processed with alkali (‘Dutched’)

    • On January 8, 2016 at 10:26 am,
      Brian says:

      Dark chocolate has replaced cigarettes in the post apocalyptic pantry (PAP)

  3. On January 8, 2016 at 11:20 am,
    Matthew says:

    If such a collapse seemed possible to everyone, you could bet everything that it wouldn’t happen. Conversely, if almost everyone agrees that Cory is the voice of reason with his skepticism, then the odds go way up that it can happen.

  4. On January 8, 2016 at 11:51 am,
    MACDaddy (Jason) says:

    You sideliners better be mowing some grass or shoveling some snow so you got some coin to short this market when it caves in. I doubled down on NUGT, SPXS, and bought a new position in VXX. Just need some popcorn and a little more cash for the party.

    • On January 8, 2016 at 7:48 pm,
      MACDaddy (Jason) says:

      Update. I rang the register today for 11% profit on my new VXX positions.

      Famed investor Phil Grande says the market crash started May of 2015, only Joe Suckface doesn’t know it yet.