One day after Jeff Gundlach warned in his latest webcast that much more pain is coming for the corporate bond market, echoing a similar warning made just hours earlier by Scott Minerd, who cautioned that “the selloff in GE is not an isolated event. More investment grade credits to follow. The slide and collapse in investment grade debt has begun”…
… it was the turn of another fund manager to join the growing chorus of warnings about the coming credit rout.
Jason Shoup, head of global credit strategy at Legal & General Investment Management America which manages $186 billion including $100 billion in fixed income, told Bloomberg that rising rates, fading stimulus, weaker earnings and a coming tide of rating downgrades mean that the worst year for investment grade in a decade is just the start of the bond slump and align to ensure that 2019 will be a tough year for U.S. corporate credit.
“It just feels like a much more risky proposition than it did a year ago,” Shoup told Bloomberg in a phone interview: “There really is no corner in which you can obviously hide.” Full story at ZeroHedge.com
70% Stock Market Crash to Strike December 1, Economist Warns
Several other noted economists and distinguished investors are warning of a stock market crash.
But there is one distinct warning that should send chills down your spine … that of famed economist Ted Bauman. Bauman and his team correctly predicted the collapse of 1999 and 2007.
Bauman now warns: “There are three key economic indicators screaming SELL. They don’t imply that a 70% collapse is looming, it’s already at our doorstep.”
And if Bauman calls for a 70% market correction, one should pay heed.
Indeed, over the last three decades he accurately predicted the financial crisis of 2008, the dot.com crash of 2000, the recession of the early 1990s and the 1987 crash.
And when Bauman makes a prediction, he backs it up. True to form, in a new controversial video, Bauman uses over a dozen indisputable charts to prove his point that a 70% stock market crash is here.
Most alarming of all, is what Bauman says will cause the collapse. It has nothing to do with interest rates, government debt, tariffs, China or North Korea. Instead, it is linked back to a little-known scheme that was deemed illegal for triggering the 1929 market crash … a scheme that was made legal again.
And although our future may seem bleak, as Bauman says: “There is no need to fall victim to the future. If you are on the right side of what’s ahead, you could seize opportunities that come along once, maybe twice, in a lifetime.”
Perhaps most importantly, in this new video presentation, Bauman reveals what he and his family are doing to prepare right now. (It’s unconventional and even controversial, but proven to work.)
While Bauman intended the video for a private audience only, original viewers leaked it out and now tens of thousands are downloading the video every day.
One anonymous viewer wrote: “Bauman uses clear evidence that spells out the looming collapse, and he does it in a simple language that anyone can understand.” [Indeed, Bauman uses a lamb analogy to prove his points.]
With his permission, I reposted the video on a private website. Click here to watch it now.