Jack Ablin says brace for at least 15 pct. drop

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Investors should brace for stocks to drop at least 15% in early 2020, money manager Jack Ablin says

Cresset Capital’s Jack Ablin is telling investors to brace for stocks to drop at least 15% in early 2020.

“Valuations are pretty stretched,” the firm’s chief investment officer told CNBC’s “Trading Nation” on Thursday. “We had [a] 30% move this year on 3% earnings Growth.”

https://www.cnbc.com/2019/12/27/stocks-are-moving-deeper-into-a-danger-zone-jack-ablin.html

 

[James48843]

Totally agree. It’s been a great year, but nothing indicates it can continue. The Fed is pouring liquidity in like gasoline on a fire, but there isn’t any reason to. Interest rates are too low to use for an emergency rate cut in the future if things fall apart. I’m thinking a good whack down is coming in the very near future. 10% for sure, maybe 15% or more. We shall see.


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[James48843]

And this is the chart that gets my attention the most.



Gray areas are the recessions. We are more than due, by all these indicators.


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[James48843]

That’s the last year or so. The dip is when the interest rates flipped. The only thing missing now, is the recession. It’s coming in the next month or two. Watch!


Gray areas are the recent recessions.
We are due.

Thanks Tom for linking those graphs. Scares the pants off me. Especially now, that I am so close to retirement. Time for me (age 59 1/2) to preserve capital.

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