A stock market expert who called the 2008 crash says a similar market crash, like the one in December of 2018 is inevitable. Former Goldman Sachs alumnus Raoul Pal said in an interview with Market Watch: “We’re coming into a period of illiquidity for equities.”
Pal is the author of the Global Macro Investor newsletter which is followed by the world’s biggest hedge funds. He cites three reasons why a repeat of the stock selloff of December 2018 may be inevitable. The first is the blackout period for companies, which hits around earnings time when their share buybacks start to slow. Secondly, he notes that this year has also seen problems with the short-term borrowing market, or repo market, that the Federal Reserve has been trying to tackle. It could mean less buying from market makers — who help create liquidity for markets by bringing buyers and sellers together, according to a report by Market Watch.
But the biggest problem facing the stock market in December, according to Pal, is baby boomers. That’s right. Americans born between the mid-1940s and mid-1960s are doing damage to the economy if Pal is to be believed. They face an annual requirement to sell about 5% of their individual retirement accounts, loaded with stocks in some cases, as they reach 70.5 years old.
“The problem is the gap between this year and last year is huge. It’s like [a] 50% increase in the amount of selling that has to be done,” said Pal. “They have to start selling by year-end. If you take out the Christmas week and you’re a financial adviser, and you want to get this done early, you will start in October.”
[Pal] blames boomer selling for part of the meltdown for stocks late last year. “The marginal change of an American baby boomer thinking ‘I’ve got too much equities,’ which they do have — that is catastrophic for the system, because they have way, way too much risk,” says Pal, co-founder of Real Vision financial television. -Market Watch
Pal called the 2008 market crash and he said a repeat of last year’s December selloff is inevitable. Take his opinion with a grain of salt if you’d like.
the old people have most of the wealth out there. its evident with all the luxury retirement homes. the nursing home industry makes a fortune off the elderly. they keep the old folks alive long enough to extract every last bit of their $. then when they are broke they go on state payer then they cut the quality of care essentially letting them die faster so the state dont have to keep paying. its a fucking racket. they let the old people keep like $40 a week of their $. they say they dont need much $ cus the home provides mostly everything. when they die there is no $ to bury them so the family has to pay for it. been through it with both the wifes parents. all i can say is you dont own shit the rich and the state own and control all $ you just think its yours and they let you know that in your last days. i know alot of people dont know how it works but this is what ive seen first hand twice. i have to believe this is how it works for all elderly who enter the care system. all nursing homes are jew owned dont believe me look it up for yourself. the old saying you wanna know what happened follow the $ is fact. this is the real truth you can believe lies that it dont work like this but it really does.
When it comes down to the nut cuttin…
Salvo is going to pussy out. Lol
Slavo or whoever
It’s mainly leftists and people that sell precious metals pushing this scenario.
That said the left has the media in their pocket and that powerful megaphone makes stuff happen.
The US economy, thanks to Trump, is still the cleanest dirty shirt in the dirty cloths hamper, and the world is out of clean cloths. Unless there is a really top notch CIA opp, the US economy will be the fall back for the rest of the world in the global crash that’s coming. The last three years has been a real education, the CIA is perhaps America’s greatest enemy, and they are the enemy inside the gates.
Germany (the EU), Russia, and China have a demographic anchor around their neck far bigger than the US. By demographic anchor, I mean an aging population that is running out of savings and retirement preps, yes that economic force causes decade long depressions.
Some of this open borders immigration crap has been done on purpose by western nations to avoid a demographic economic disaster. Again the US has the highest grade migrants, the Hispanics of South America and Asians are a far greater resource than what the EU is being flooded with from the Middle East who have IQ’s that fit within the speed limits of most western nation highways, and their prophets mandate to behead their new hosts…..
I’m with Mac, be ready for the unexpected, if you have cash be invested broadly, my advice, avoid bonds and risky stocks.
One side thought on a cash savings account. A bank can go bust and you could lose savings and the goods in a safe deposit box, beware. On the other hand a brokerage account is generally well insured, and they can’t loan your money out, even overnight, thus why it pays fractional interest rates compared to banks.
With my brokerage account I’ve been lightly in the market, investing only in cash rich companies that just did something new that is a hit. Avoid risk.
I have a sister who never touched the market, but she knows homes and owns three at this point. I think she’s doing just fine, she has good tenants in two properties. Real estate and the market are just as risky. Henry Ford said to a young guy asking advise once, Ford said, do what you know, don’t try to be me or your neighbor.
And just keep on prepping.
Laughing at California with the blackouts, obviously PE&G in California wants some kind of deal from the governor and legislature to protect their libelous butts. What a joke. Tesla is warning California Tesla owners to always keep their cars fully charged… Assuming you want to escape the next fire!
I’m imagining all those global warming greenies that bought Teslas are now running out to get emergency gasoline powered generators to keep their clean electric cars charged. The imagery is worthy of a double face palm.
Mac this could make the best sarcastic prepper comedy article ever, how Global warming nuts can survive the loss of fossil fuels, by stocking up on fossil fuels. While the California countryside burns and releases megatons of CO2……
Final thought, the left is gone psychotic. They have been promised Trumps head, Trump is a crook, Trump is illegitimate, Trump must be impeached. If arrests start happening because of the lefts failing coups, expect all hell to break out. My greatest fear is TEOTWAWKI hits in late fall, early winter, and there is no food, or heat. Every prepper needs a plan to get through one long cold winter. By spring it will be a whome different world. I have images from the movie Dr Zhivago, the movie should be required viewing for preppers.
I’m waiting to buy more at lower prices.
If you have a 401k and have access to your account and yours offers the option of self directed brokerage account you should be able to print a couple pages and fill them out then fax them back thus converting to a self directed account. You are then not limited to only the pre established mutual funds offered by the company but in turn can choose what and where you want your money. Here are a couple to research in the outlook of a crash/recession. Ryvtx. Ryvnx. Ryidx. Rycmx. Not saying get stupid greedy but get some ass coverage. Look at the per share price history in 2002,2008 when thing went to shit in the past