The Briefing Room

General Category => Economy/Business => Topic started by: endicom on March 21, 2018, 06:01:26 pm

Title: ‘Mother of all yield shocks’ is about to crush stocks, warns ‘Father of Reaganomics’
Post by: endicom on March 21, 2018, 06:01:26 pm

Market Watch
Shawn Langlois
Mar. 21, 2018

David Stockman, the so-called “Father of Reaganomics,” hasn’t been shy — or close to right — about his frantically bearish calls in recent years.

Just last summer, he warned of a “horrendous storm” that could take the S&P 500 index SPX, +0.36%  all the way down to 1,600. From there, he took it up a notch in September, saying stocks are headed for a retreat of up to 70%.

Well, it’s still up at 2,700.

But the market’s volatile behavior of late has emboldened some bears to refresh and even ramp up their doomsday scenarios. Stockman is one of them.

More... https://www.marketwatch.com/story/mother-of-all-yield-shocks-is-about-to-crush-stocks-warns-father-of-reaganomics-2018-03-21 (https://www.marketwatch.com/story/mother-of-all-yield-shocks-is-about-to-crush-stocks-warns-father-of-reaganomics-2018-03-21)

Title: Re: ‘Mother of all yield shocks’ is about to crush stocks, warns ‘Father of Reaganomics’
Post by: Free Vulcan on March 21, 2018, 07:21:01 pm

He's right. The world economy is a glass house - it will stand as long as the boulder of rising rates doesn't crash into it. When it does it will be devastating.