David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off.
Stockman, the Reagan administration's director of the Office of Management and Budget, isn't stepping away from his thesis that the 8½-year-old rally is in serious danger.
"There is a correction every seven to eight years, and they tend to be anywhere from 40 to 70 percent," Stockman said recently on CNBC's "Futures Now." "If you have to work for a living, get out of the casino because it's a dangerous place."
He's made similar calls, but they haven't materialized. In June, Stockman told CNBC the S&P 500 could easily fall to 1,600, which at the time represented a 34 percent drop. This week, the index was trading at record levels above 2,500.
Stockman puts a big portion of the blame on the Federal Reserve, and its ultra-loose monetary policy.
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If investors sell stocks, where are they going to put their money?? The bank at .2 %?. Bonds at 1%?
ReplyDeleteIf there is a sell off, it won't last long.
Has Stockman gotten ANY of his "predictions" right?
ReplyDelete