Today one of the top economists in the world told King World News that despite bounces, stocks will continue to crater and he has positioned his clients short for a collapse in global markets. Michael Pento, founder of Pento Portfolio Strategies, also warned that central planners now have the world headed into a depression.
“You’ve seen the releases from China, and now the Fed is feigning an interest in letting markets work. I believe it’s because they have duped themselves into believing that all of the cocaine they have put the economy on, in order to put a floor under real estate and give a boost to equity markets, isn’t the reason why we have some semblance of growth in global GDP. Continue reading
The S&P 500 is set to fall another 8 percent by the end of the year, on top of the 7 percent decline seen since the year’s high reached in September, according to a new strategy note by Goldman Sachs.
“Uncertainty swirling around the “fiscal cliff” that must be resolved by year end, the pending jump in capital gains taxes at the start of 2013, and the debt ceiling that will be reached in late February, represent clear and present downside risks to the market in the near term,” wrote the analysts, headed by Chief U.S. Equity Strategist David Kostin. Continue reading