A Wall-Street veteran comments on the stock market as it teeters on the brink of a bear market.
In a recent interview on CNBC, CEO of Morgan Creek Capital Management, Mark Yusko, announced that that bears are already out and stocks are going to finish the year on an economic downturn, lower by a double-digit percentage.
This is not the first time that Yusko has correctly predicted that course of stocks. In 2018 he predicted yet again that stocks would end the tear on a sour note, and they did.
Yusko has suggested that we will see another “credit crisis” in 2020, not to the magnitude of the great recession that we saw in 2008, however, he would not be surprised to see the stock market take a deep decline between 12-14 percent by the end of 2019.
It would be beneficial to keep an eye on the financial news.
Yusko explains the looming downturn of the stock market as a “Growth-Pocalypse,” admitting it is hyperbolic, explaining,
“When I say Growth-Pocalypse, I mean one handle for the second quarter, maybe lower for the third quarter, and recession sometime late this year/early next year. Shallow recession like 2001.”
In the latest United States Federal Reserve minutes, they revealed that monetary policy makers are in a dovish, not hawkish, position. With talks suggesting that an interest rate cut rather than a hike is soon to be happening. This might make President Donald Trump jump for joy, however, Yusko suggests that this is simply a sign of economic weakness.
Yusko is a shameless Bitcoin bull, and has given some strong advice to novice investors or those just starting their portfolio.
In order to overcome the bear market of the stocks Yusko strongly advises that every investor should invest in Bitcoin (BTC). Yusko has stated that BTC investments will far outperform the S&P 500 investment fund over the next 10 years.
“Bitcoin is a great diversifying asset. It has very low correlation. It should be in everybody’s portfolio.”