(NaturalNews) Despite the recent rebound in stock values following a major plunge caused by China’s currency devaluation and resultant market losses, a number of notable economists and distinguished investors say the worst is yet to come – and it could be catastrophic.
As reported by the The Sovereign Investor web site, billionaire Carl Icahn is among those who have recently tossed red flags into the air. Icahn recently declared in a national interview, “The public is walking into a trap again as they did in 2007.”
As dire as that prediction sounds, it is much tamer than those of some of his peers.
“U.S. stocks are now about 80 percent overvalued,” Andrew Smithers, the chairman of Smithers & Co, said.
He went on to substantiate his prediction by using a ratio that proves the only time in history stocks were as risky as they are today was in 1929 and 1999; in those years, stocks fell by 89 percent and 50 percent respectively.
Bottoming out
Former GOP Rep. Ron Paul of Texas has not minced his words, either. He told CNBC in June that the stock market’s “day of reckoning” is quickly approaching. When that day comes, Paul doesn’t believe it will be in the form of a correction but rather full-blown “stock market chaos.”
In Paul’s eyes, “the fallacy of economic planning” has led to such a “horrendous bubble” in the bond market that it’s only a matter of time before the floor falls out.
However, as The Sovereign Investor reported, there is another warning that should deeply worry everyone. This one comes from James Dale Davidson. The site notes:
As a renowned economist, best-selling author, and founder of Strategic Investment, Davidson makes the strongest case for a looming crisis — “Right now, there are three key economic indicators screaming SELL. They don’t imply that a 50 percent collapse is looming, it’s already at our doorstep.”
Full article: Stock market is 50% to 80% overvalued; experts warn historical crash now imminent (Natural News)
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