Articles tagged with: Federal Reserve
The man who predicted the 1987 stock market crash and the recent global economic recession believes the worst crash in decades will take place later in the next 12 months. Dr Marc Faber, a Swiss investor and the author of the Gloom, Boom & Doom Report, said the cause of the crash would be the overvaluing of companies within the internet and biotechnology sectors.
Fears over US monetary tightening, rate hikes, and recession triggered the 1987 stock market crash, and there are parallels with today’s market environment, said Société Générale’s Albert Edwards. In his latest note, the ultra-bearish strategist said the evolution of bonds yields and equity markets this year looks similar to what happened before the market collapse of 1987.
Stock market declines, especially the violent kind we refer to as “crashes,” are pretty hard to predict — for every crash one or two visionaries emerge who called the market decline with unusual accuracy. In time, we generally conclude that these visionaries were more lucky than prescient, because there are no records of prognosticators who predict market crashes more than once.