Odd Lots Why A Longtime Bull Just Flipped Very Bearish On The Stock Market
Jul 15, 2019
Mark Cudmore, a Bloomberg macro strategist and longtime market bull, reveals his surprising shift to a bearish outlook. He discusses the unusual stock market landscape with equities at record highs despite rising negative sentiment. Cudmore analyzes the implications of the U.S.-China trade war and how it impacts investor behavior and economic forecasts. He highlights challenges in the credit markets, warning about potential recessions and the complexities of current financial policies that could threaten the market's stability.
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Longtime Bull Turns Bearish
- Mark Cudmore, a longtime bull, has turned bearish on the stock market.
- He believes the market will experience a 20% decline due to weakening economic pillars.
Weakening Market Pillars
- The three pillars driving the market rally (growth, earnings, and liquidity) are faltering.
- Growth and earnings forecasts are too optimistic and will likely be revised downwards.
Fed's Limited Impact
- The Federal Reserve's easing cycles in 2001 and 2007 failed to prevent recessions.
- Monetary policy alone cannot counter significant economic downturns.