Everyone knows our economy has been doing better, but to what degree? And where does this leave the market? There is definitely stock market instability going on you may not know about. Housing prices are surging, the unemployment rate is going down, and the Federal Reserve keeps inflating the market by printing more money. The problem is, this looks eerily similar to something we have seen before. Don’t believe me? Listen to the experts.
1.Dalio thinks we are headed to a similar economy collapse as that of the Great Depression. That should ruffle your feathers a bit. This is real.
(Bloomberg) — Ray Dalio, founder of the world’s largest hedge fund firm, Bridgewater Associates, told investors there’s a risk that the Federal Reserve could create a market rout similar to that of 1937 if it raises interest rates too fast. Read the full story here…
2. The past month has had weeks of ups and downs, but the trend is leading toward a long stretch of decline.
Profits for S&P 500 companies are forecast to decline 5.8 percent in the first quarter as results were buffeted by tumbling oil prices and a stronger dollar. Investors may face the longest stretch of declines since the financial crisis, with slumps of 4.2 percent and 1 percent over the second and third quarters, according to analyst estimates. See why this could affect you here…
3. Redleaf, a CEO, thinks the inflation could lead to something similar to that of the housing crisis. Didn’t that JUST happen? How are we here again?!
“I think it is a truly scary time,” Andy Redleaf, CEO of $4.2 billion hedge and mutual fund manager Whitebox Advisors, said in an internal memo Sunday night obtained by CNBC.com. Redleaf wrote that the stimulus used to put fresh money in markets could end poorly, just like loose credit standards in housing before 2007 crushed that market. Continue reading here…
4. Investors seem to be wanting to turn their investments into cash, and quickly. They don’t want to lose their money in the market they see as volatile!
Recent market volatility has sent stock market investors rushing for the exits and into cash. Outflows from equity-based funds in 2015 have reached their highest level since 2009, thanks to a seesaw market that has come under pressure from weak economic data, a stronger dollar and the prospect of monetary tightening. See what else they say here…
5. How about Bill Gross? The way he sees it, everything is priced inaccurately. So, how do you decide where to put your money then?
As Bill Gross sees it, investors face a tough time ahead trying to pick places to put money in a world where basically everything is mispriced.
Central banks that have kept rates low have helped boost asset prices, but the landscape will be different now that stimulus from the Federal Reserve and elsewhere is losing its impact, the Janus Funds portfolio manager said in his latest missive to clients. See his full analysis here…