In This Article:
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Michael Burry and Jeremy Grantham have both warned the stock-market crash is well underway.
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Nouriel Roubini, Robert Kiyosaki, and Harry Dent also expect asset prices to plunge further.
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Here's a roundup of what five market doomsayers are predicting.
Michael Burry, Jeremy Grantham, and other market experts have warned the stock-market downturn this year is far from over.
Nouriel Roubini, Robert Kiyosaki, and Harry Dent are among those predicting asset prices will plunge further. They have cited excessive valuations, stubborn inflation, a potential recession, pandemic disruptions, and food and fuel crises as some of the reasons they expect a devastating crash.
Here's what 5 doomsayers have said about the stock market:
Michael Burry
Michael Burry diagnosed last year an unprecedented bubble in asset prices, and warned it would culminate in the "mother of all crashes." He hinted the meltdown is in full swing in a since-deleted tweet this week.
The investor of "The Big Short" fame shared a S&P 500 chart showing the stock-market index has plunged 18% from its December peak. "And yet I keep getting asked 'wen crash?'" he wrote, implying the downturn is well underway.
Burry has suggested the S&P 500 could plummet by 53% to below 1,900 points over the next few years, based on the benchmark index's bottom tick during previous crashes.
Jeremy Grantham
Jeremy Grantham cautioned an epic "superbubble" across stocks, bonds, and housing was about to collapse, writing in a research note this week.
The veteran investor and GMO cofounder dismissed the recent rebound in stocks as a brief reprieve, noting that previous superbubbles have always been followed by market declines of at least 50%.
Grantham outlined how a painful combination of pressures spell trouble for asset prices and global growth. He pointed to shrinking corporate margins, high inflation, interest-rate hikes, food and energy crises, pandemic disruptions, the Russia-Ukraine war, and longer-term issues such as ageing populations and labor shortages.
"Each cycle is different and unique — but every historical parallel suggests that the worst is yet to come," he said.
Nouriel Roubini
Nouriel Roubini suggested during a recent webinar that the Federal Reserve might have to raise interest rates to 5% to rein in inflation. But he said a hike of that magnitude in the debt-ridden US economy could cause stocks, bonds, housing, credit, private equity, and other markets to crash.
The NYU Stern economist, whose nickname is "Dr. Doom," argued the economy was poised to suffer a painful recession, which could drive stocks down by another 35%.