Morgan Stanley’s top strategist Mike Wilson says US stocks are now in a “death zone,” comparing stock prices’ unsustainable highs to a trek up Mount Everest. In this analogy, he suggests that US investors are the climbers who blindly push forward without properly considering the risk. “Investors have followed stock prices to dizzying heights once again,” he said. Wilson expects the S&P 500 to bottom out at 3,000 points this year, 26% below the 4,080 points it traded at as of Friday, and disregards the optimism coming from Wall Street. In other news, expert Andy Schectman predicts a “tsunami of inflation” as the world moves away from the US dollar. “[De-dollarization] seems to be spinning much, much faster,” he warned. If other countries start dumping dollars, Schectman sees a loss in purchasing power, causing rate hikes and an eventual crash for US assets.

Business Insider/George Glover
US stocks are in the ‘death zone’ and could crash 26% within months, Morgan Stanley’s top strategist says

US stocks have soared to unsustainable highs – but investors are behaving similarly to climbers who blindly push on toward the top of Mount Everest without properly considering the risks, according to Morgan Stanley’s Mike Wilson.

The bank’s chief US equity strategist said Sunday that he sees similarities between current valuations and the “death zone” – an area just below the summit of the world’s tallest mountain where there is so little oxygen that the human body starts to die, minute by minute and cell by cell.

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Kitco News/Cornelius Christian
Half the world to dump U.S. dollars in future, causing ‘tsunami of inflation’ and asset price ‘collapse’, paving the way for CBDCs and The Great Reset – Andy Schectman

As the world moves away from the U.S. dollar as a world reserve asset, dollars will be dumped globally, causing a “tsunami of inflation” in the United States as the currency returns to American shores. Interest rates will rise accordingly, followed by a “collapse” in asset prices, which would be used to usher in Central Bank Digital Currencies (CBDCs) and The Great Reset.

This dire scenario is the forecast of Andy Schectman, President and Owner of Miles Franklin and an expert on monetary and economic history. Schectman, who has three decades of experience in the precious metals sector, said that the BRICS (Brazil, Russia, India, China, and South Africa) coalition could lead the charge to develop their own reserve currency which would compete against the U.S. dollar.

You can read the full article, here.

Yahoo Finance/Brian Sozzi
Why investors should remain on recession watch in 2023: Morning Brief

After some time on the shelf, I am pulling out my recession-watching binoculars once again.

Sure, you’re going to tell me recent big reads on non-farm payrolls and retail sales are suggesting a recession in 2023 is not in the cards. Fair argument, and one Goldman Sachs economists agree with apparently.

The investment bank’s economics team has slashed its twelve-month recession probability forecast to 25% from 35% — consensus expectations still put a 65% chance on a recession this year — reflecting “continued strength” in the labor market and “early signs” of improvement in various business surveys.

You can read the full article, here.

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