Monday, March 09, 2020

‘This Is 1929’: Hedge Fund Bear Warns of Great Depression-Style Stock Market Crash

NOTE!!!  I'm just posting this because it caught my eye.  From my layman's point of view the guy puts forth a pretty credible case.  I'll let you decide whether or not he's close or wildly off the mark.  One thing I do know.  The FED caught me off guard with their emergency rate cut and it did nothing to stop the bears from trampling all over last years profit in the stock market.  Now?  Now we're looking at an oil crash.  The problem from my chair?  We're at least seeing the possibility of a repeat of 2008.  Do you remember the basic problem?  The velocity of money was slowing so dramatically that the economy was gonna seize up.  One (more) last thing.  Economist have been predicting a recession in 2020 since early last year.  Just Google "are we looking at a recession" and you'll see tons of articles from last year, early this year.


via ccn.com
Crescat Capital says stock market valuations have soared to double their previous highs. And that a 1929-style crash could be looming. | Source: Everett Historical/Shutterstock.com

Hedge fund bear Kevin Smith says that the coronavirus outbreak has triggered a stock market crash.

But forget 2008, Smith says this one could mirror the 1929 downturn that accompanied the Great Depression.

His firm, Crescat Capital, is hedging against the crash with its three-pronged “macro trade of the century.”

As the coronavirus outbreak rattles the Dow Jones, nervy investors are drawing parallels to the stock market crash that accompanied the 2008 financial crisis.

But one Wall Street bear warns that this equities bubble mirrors an even more terrifying downturn: the Great Depression.
Here.

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