MarketWatch, not ordinarily a site devoted to doomsday predictions (just as TCA isn’t so predisposed) offers a compelling compendium of people and institutions who believe financial markets might be poised to suffer a precipitous fall. I’ll list them by heading, but the best thing to do would be simply to visit the site and read the article, Doomsday poll: 87% risk of stock crash by year end, written by Paul B Farrell. It is not deranged. It is well-reasoned. Here goes:
1) Warren Buffett guaranteed a new bubble. In 2008. Mr. Buffett, much as I did, predicted a huge new bubble in all sorts of financial vehicles would emerge from the mania of central bank profligacy. He predicted as much in 2008, when the profligacy began. And so the bubble has come to pass.
2) Even the Fed is concerned about its bubble-blowing propensities. It says so in the minutes of its latest meeting of the Federal Reserve Advisory Council.
3) Euro Pacific Capital CEO Peter Schiff is not backing down from his doomsday predictions, even in light of recent, mostly favorable, economic news.
4) Bill Gross has been saying this all along.
5) Gary Shilling of the famous real estate price index points to the “grand disconnect” between weak economic systems and the financial market’s record-setting territory.
6) Jeffrey Gundlach, CEO of Doubleline Capital predicts a “kaboom” in stocks coming soon.
7) Investment News predicts a collapse in bond markets.
8) David Stockman, former Reagan budget director and now a private equity firm principle says the whole of financial markets these days is based on smoke and mirrors.
9) Nouriel Roubini. He predicted the last one.
10) Jeremy Grantham. He observes that the era of rapid economic growth for the US has ended, though markets don’t reflect the reality.