Veteran Analyst David Hunter Predicts Stocks To Crash 65-80% This Year

3 years ago
27

A year ago, macro strategist David Hunter predicted a massive melt-up in financial assets, to be followed by an equally tremendous market crash.

Well, he's certainly been right so far on the melt-up prediction.

All major stock indices are trading at record highs. And valuations have never been more stretched.

Market Cap to GDP (the famed "Buffet Indicator") has never been higher. Nor has the market's price-to-sales ratio.

As analyst Sven Henrick puts it "everything has gone vertical".

So, having correctly called the current melt-up, will Hunter's prediction of a 65-80% crash in prices this year also come true?

Time will tell. But as extreme as that kind of drop may seem, history is on David's side.

Whenever excessive debt has enabled market multiples to distort to unsustainably excessive heights -- which is what's happening now on an unprecedented level -- a painful correction to clear out the bad debt and malinvestment has always occurred.

But despite his dire forecast, Hunter is more sanguine about what will follow. He predicts that those who preserve their capital through the coming crash will have the opportunity to deploy it at very advantageous terms as the next recovery begins. And like previous guests Jim Rogers and Steen Jakobsen, he sees a very bright future ahead for commodities and the companies that source, refine and deliver them to market.

Which is why now, more than ever, is the time to partner with a financial advisor who understands the nature of the risks and opportunities in play, can craft an appropriate portfolio strategy for you given your needs, and apply sound risk management protection where appropriate.

Anyone interested in scheduling a free consultation and portfolio review with Mike Preston and John Llodra and their team at New Harbor Financial can do so by clicking here:

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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?

Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.

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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.

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