Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
Login Archives Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • AI Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    • Postcards
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Stock Market

Is David Stockman's Stock Market Crash Prediction on Target?

By , Money Morning • April 1, 2013

View Comments

Start the conversation

Leave a Reply Click here to cancel reply.

You must be logged in to post a comment.

David Stockman, who had been budget director under President Ronald Reagan, created quite a stir when he predicted a stock market crash in an op-ed piece in The New York Times Sunday.

"Over the last 13 years, the stock market has twice crashed and touched off a recession: American households lost $5 trillion in the 2000 dot-com bust and more than $7 trillion in the 2007 housing crash," Stockman, now an investment banker, wrote. "Sooner or later - within a few years, I predict - this latest Wall Street bubble, inflated by an egregious flood of phony money from the Federal Reserve rather than real economic gains, will explode, too."

Money Morning Chief Investment Strategist Keith Fitz-Gerald joined FOX Business Network's "Varney & Co." Monday to tell investors if Stockman's prediction is on point.

"If you look to Stockman's article ... to me that's a huge contrarian signal," Fitz-Gerald said.

Check out this video to hear Fitz-Gerald on what investors should do now, what to expect from markets, and why this situation is so different from March 2009.

 









Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Appreciation is great, but it’s possible to get even more out of the shares you own. A lot more: you can easily beat inflation and collect regular income to spare. There are no complicated trades to put on, no high-level options clearances necessary. In fact, you can do this with a couple of mouse clicks – passive income redefined. Click here for the report…

Claim My Free Report

Subscribe
Login
Notify of
guest

guest

3 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
Mark
Mark
10 years ago

I love to watch the Stuart Varney show!! The "Stockman" interview in the short term is just crazy talk. In the longer term he is just explaining what we are in for. I set the traling stops on my Scott trades at 10%, my 401k may crash and burn again. why can't you have trailing stops on the company 401k holdings? The system is rigged. I can trade all my winnings out when I am scared. But thats what the rest do, and then the market rebounds and I need to wait 60 days to be able to trade the funds back in without penelty. The rules are pitted against the middle class.

0
Reply
H. Craig Bradley
H. Craig Bradley
10 years ago

PREDICTIONS and TRENDS

Dr. Walter Williams ( Economist, George Mason University) wrote last year that if we continue on the path we have chosen, then a financial collapse is probably unavoidable sometime in the next 10-20 years. David Stockman says we only have about three more years until it all implodes, wiping out investors large and small. Keith is correct in that nobody can time the market accurately to benefit in the short term, so he uses a technique that includes trailing stocks and conservative stock selection.

I would say that the truly high net worth individuals have scaled-down their holdings in financials such as traditional stocks and bonds, particularly after the 2007-2009 stock market crash. Instead, most wealthy (rich folk) have a sizeable portion of their assets tied-up in non-liquid productive assets that produce income and appreciation such as various types of commercial real estate, oil and gas partnerships, agriculture, water, direct investment in small businesses (wineries), etc.

One trait that separates the average investor from the rest of the pack is the ability to determine if a particular investment is overpriced at any given time. The really smart ones don't overpay for any investment. It really makes it harder to make good returns, even if you make good selections and have a long time horizon.

Most investors just pile-in and often at the higher end of the price range ( along with the rest of the crowd). Most investors don't even know they are following a crowd in or out of a given sector or specific investment. Its very hard not to be sucked-in to manias and investment tends. We usually do what everyone else is doing at about the same time. Its innate to humans.

0
Reply
kenezen
kenezen
10 years ago

In the vernacular of the sage prophets of old "Watch your **** Here!" I highly respect the financial intelligence of David Stockman. I respect Jamie Dimon and his ability to have brought his firm through the 2007-2008 disaster practically whole while many pretenders, whose Banks went broke and are still in place and go on TV to tell people what to do in markets. I watch and listen carefully. I have conscientiously protected my currency for years because one only has to look at a long term chart of dollar value since the thirties to understand it's purchasing power to goods necessary to life never goes higher.
There has been and will be a further lowering of dollar value and living standards. It unfortunately be for the same reasons that has plagued America and others for centuries. Good Economies become Socialistic!

Go ask major Companies with American names like GE, GM, Honeywell, Goodrich and others why they recycled back from Asia to the America's recently, but, went to Mexico to set up manufacturing and other plants instead of here? GO ON! It's our Federal Government for years!

Privately away from cameras and notoriety they quietly say: 1. Its Federal Taxes highest in the world on business profit. 2. Federal Government Agencies like EPA, NLRB and many others. It takes years to get permission just to build then. attacks from there-on. We really already subliminally know this. Wages surprisingly is number six on their list. So when our kids in the inner cities, the ones not going to college, currently 50% unemployed who in the past would go to work in a factory can't find a factory to work in, look around!! They're gone!

That's why we're going to crash! When? Can't say, but we will because we're not internationally competitive for the bulk of our population and we're adding more!

0
Reply


Latest News

September 22, 2023 • By Shah Gilani

earnings
Why the Fed's "Higher for Longer" Message on Interest Rates is Bogus

September 22, 2023 • By Tom Gentile

This is the Top 'Worst-in-Breed' Stock Heading into October

September 21, 2023 • By Shah Gilani

earnings
The Best Auto Stocks to Buy (or Avoid) Right Now
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Penny Hawk Midday Momentum
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Quantum Data Profits Flashpoint Trader Darknet Alpha Accelerators Brutus Alerts Resource Traders Alliance L.A.U.N.C.H. Investor Rob Roy Trader Long-Term Equity Profits

© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz