icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Huge stock market bubble forming with an inevitable 60% plunge, strategist warns

Huge stock market bubble forming with an inevitable 60% plunge, strategist warns
The “everything rally” that has engulfed Wall Street is a classic asset bubble just waiting to burst sometime in 2020, CEO of AdvisorShares Noah Hamman told Yahoo Finance.

“It will continue on for a while for as long as we see we have an indication that we could have lower rates ahead, though possibly with a pause, but with an increasing Fed balance sheet,” he said.

The “everything rally” refers to assets of all kinds that have been in major rally mode. Hype has risen among investors, thanks to the US Federal Reserve’s rate cuts throughout 2019 and the signing of a phase one trade deal between the US and China.

Also on rt.com US stocks surge even HIGHER after ‘Phase One’ deal with China news

According to Hamman, the Fed’s actions were “driving up prices everywhere.” He warned that if the Fed signals a change in interest rate policy by mid-2020, the bubble could explode.

“It could be a huge bubble, and we could see huge declines — 50 percent and 60 percent declines that happen quickly before you have a chance to react to them,” said the strategist, recommending that investors stay long in the market until then.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.