The year 2017 has been stellar for stock market investors. Interestingly, most of the rise has been caused by enthusiasm about the future.
The large reductions in the governmental regulations, hopes that there will be more in the future, hopes that tax cuts will be substantial and fuel future economic growth, and hopes that the efforts of the far left to derail the president’s growth agenda will fail, have all led to the rise in optimism among investors.
Wall Street firms have just issued their forecasts for the stock market in 2018. The forecasts seem to be looking for 10%–15%
For the past several months, we have heard many top hedge fund and other analysts voicing their concern about the markets, with some forecasting a crash or at least a sharp plunge because of overvaluations.
Former hedge fund manager Jim Rogers, now residing in Asia, told Business Insider that the greatest crash of our lifetime will happen “later this year or next.” He says, “Be worried.”
Another well-known analyst, Marc Faber, told CNBC that he sees a plummet of 40% or more, and “it will end very badly, extremely badly.” He didn’t say when.
Analyst David Stockman, former budget director for
As you know, the oil industry has been in a severe depression since 2014. Oil prices plummeted from over $100/barrel all the way down to $30/barrel. Today, that figure hovers around $50 and is showing little signs of returning back to the $100 level any time soon. As bullish speculators continue to get burned by “demand is finally back” or “supply is finally falling,” more and more oil giants fall on serious hard times.
Lately at Dohmen Capital, we are seeing how the Real Estate market now is somewhat reminiscent of the environment leading up to the Great Financial Crisis of 2008. However, we must keep in mind that there was a roughly two year lead time between the first signals of excesses and the crash of 2008.
Between 2008- 2009, many investors were burned, with the estimated losses equaling over 20 trillion U.S dollars.
Bert Dohmen examines…
Does the Economy Determine the
Trends of the Stock Market?
Bert Dohmen asks…
Is This the End of the
Bert Dohmen asks…
Have We Seen The End of
Normal Market Behavior?
Continue to Sink to
the Lows Seen in
The Retail sector is getting hit hard once again, while many of the big retailers gather at a conference this week. The CEOs of some of the major department stores continue to tout “big growth areas” for their firms in the near future.
Germany is proposing legislation to combat the avalanche of fake “news” by imposing heavy fines on media outlets that disseminate slanderous and defamatory material while doing nothing to try to prevent the publishing of such falsehoods. It would be the opposite of U.S. law, which basically gives immunity to the media outlets that post or carry such often malicious articles.
According to the New York Times, major social media firms like Facebook and Twitter may be faced with huge fines, up to $53 million, if they don’t comply with a newly proposed law by Germany’s minister of justice and
One of the biggest hedge fund managers, Bill Ackman, considered to be one of brightest, lost over 95% in one of his largest positions, Valeant Pharmaceuticals (VRX).
He held the stock for about 3 years, while the stock plunged from $257 to $11 on March 14, 2017. On March 13, he declared he had sold his entire position in Valeant.