CNBC: Markets Will 'Abruptly' Drop 25-50%

Discussion in 'Wall St. News' started by wildfirepow, Aug 17, 2009.

  1. Markets will drop 25 to 50 percent and it will happen abruptly, Deighan told CNBC.

    “There’s no basic foundation for the run-up we’ve had, been far too rapid. It continues to run up on what’s normally considered bad news,” he said.

    Deighan said in the past, Wall Street “shoved things down Main Street’s throat.” And now, he believes, "Washington" is trying to do the same. Main Street is slowly finding out "what’s going on with the banks, health care and the Federal Reserve’s moves" and they are “absolutely angry.”
  2. When they talked about dropping 25-50% they were talking about their ratings, not the market.
  3. Deighan talks up his own book and the same tired story, buy gold, short stocks. He may get it right one of these days, but probably not right now:

    "Friday, 22nd May 2009 (722 views)
    Demand for gold as a safe haven asset will continue to grow over the coming months, a financial markets expert has forecast.

    Dan Deighan, founder and president of Deighan Financial Advisors, predicted that US stocks will plummet past lows seen last autumn during the third or fourth quarter of this year "once people see that government efforts to resurrect the banks won't work to the degree that they're expecting them to".

    He explained that such a sharp drop could "really shake people up", boosting the value of gold "significantly" if the level of financial uncertainty continues to grow.

    Mr Deighan suggested that investment in gold coins acts as an insurance policy against inflation and claimed that bullion is "still a good buy", even if prices do not leap in the near term"
  4. Gold price are dropping and not moving above $970 per ounce.

    So now gold is not a safe investment/haven available.
  5. Yet another gold "bug" proved WRONG.
  6. gold will fall with equities---otherwise, mr. d may be correct.

  7. CET


    Stop listening to CNBC. If you want/need to watch it for the ticker or the scrolling index quotes at least keep it on mute. Trade the action.
  8. But Dear Abby (Cohen) says the markets will rise 25-50%. Has she ever been wrong?
  9. I will rather chose to listen GS over CNBC.
  10. Gold was one of the very very few asset classes up year on year in 2008 and is up 7% today from january the first 2009.

    One can discuss gold's performance VS it's reputation but facts are facts and for now sticking with gold has been a winning position for many.

    #10     Aug 17, 2009