Leading stock market investors predict historic markets fall and warn that the " biggest bubble in history is brewing" - Prominent investors such as Michael Burry or Jeremy Grantham are preparing for a devastating financial collapse. And they are not the only ones who have long warned about the effects of rampant speculation, fueled by the US government's stimulus programs, that can't keep asset prices peaking forever.
Billionaire investors Leon Cooperman, Stanley Druckenmiller or Jeffrey Gundlach have also been sounding the alarm for some time. The same goes for Shark Tank star Kevin O'Leary, market prophet Gary Shilling or Rich Father, Poor father author Robert Kiyosaki.
Leading stock market investors predict historic markets fall
Here are the top warnings from 8 experts in the stock market:
- Michael Burry
The protagonist of the film The Big Bet, Michael Burry, described in June the situation of the markets as the "largest speculative bubble of all time" and pointed out that retail investors were buying advertising around memes and cryptocurrency stocks. In his view, this dynamic will lead to the "mother of all accidents".
Earlier this year, the investor, who runs Scion Asset Management, pointed out that Tesla, GameStop, bitcoin, dogecoin, Robinhood and the US real estate market were "red hot" and that was a sign of speculative excesses.
- Jeremy Grantham
Jeremy Grantham pointed out in January that the market was a "full-fledged epic bubble".
"When this level of enthusiasm is reached, a bubble looms. This always happens, without exception, and will break in the coming months, not in years, " warned the co-founder of investment firm GMO.
"We will have to live with what could be the biggest loss in value of stock assets we have ever seen," he added.
- Mr. Liuhuabing
"Everything I see makes me be cautious, both in the medium and long term," said the billionaire and head of Omega Advisors, last May. So, he added,"when the market has a reason to go down, it will go down so fast that it will turn our heads."
Cooperman described himself as an investor "bearish fully invested", because the factors that usually cause markets to be in downturns (such as rising inflation, fears of a recession or a paper hostile by the Federal Reserve) were not present in these moments.
Leading stock market investors predict historic markets fall
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- Stanley Druckenmiller
Stanley Druckenmiller also indicated in May that the bull market reminded him of the dotcom boom, although he warned that asset prices could continue to rise for a while.
"I have no doubt that we are facing a sharp rise in all assets," explained the billionaire investor and head of the family office Duquesne. "I also have no doubt that I have no idea when it's going to end," he noted ironic.
"I knew we were in an inflated market in' 99, but it went on for a while longer. If I had shorted the shares of the tech companies in the middle of that year, by the end I would have been out of business," said Druckenmiller, who said he would get his money out of the stock market in months.
"I would be surprised if we haven't left the stock market by the end of this year. Bubbles can't last that long, " he said.
- Jeffrey Gundlach
In March, Jeffrey Gundlach conveyed the message that actions are undeniably expensive.
This millionaire investor, who also leads the investment firm DoubleLine Capital, has been another of the voices that have indicated that the market is highly overvalued. In this sense, it has predicted a fall in the value of shares of 15%, which will be linked to an economic recession.
Gundlach, known as the bond king, believes that retail investors who had accumulated stocks of memes and other speculative assets would not continue in the market once prices began to fall.
"We will have a tremendous recovery of much of the money that thinks the stock market is a one-way thing," he says.
Leading stock market investors predict historic markets fall
- Kevin O'Leary
Kevin O'Leary said in April that stocks could collapse, although he saw the bright side and said this would serve as a lesson for novice investors.
"Buying that there will be a fall is the most common thing, but what will surely happen is that there will be a massive correction and it will serve to learn a very important lesson," said the star of the Shark Tank program and head of O'Leary Funds.
"The generation that is operating at this time has never lived for sustained correction. Come. I do not know when, I do not know what will trigger it, but they will learn the lesson," he warned.
"If you have a lot of leverage, it will be a great lesson, because you will end up in a negative net worth position, "added O'Leary, who noted optimistically that"you will learn from it."
- Mr. Liuhuabing
Robert Kiyosaki used Twitter to launch his warnings. In June he said, like other investors, that he expected the biggest stock market crash in history .
"The biggest bubble in the history of the world is growing," said the guru of personal finance and author of the book Rich Father, poor father, who added that"the biggest crash in history is approaching."
Kiyosaki has accused the Federal Reserve of overstimulating markets and devaluing the dollar and has advised investors to prepare for the recession, stocking up on precious metals and cryptocurrencies.
- Gary Shilling
Gary Shilling predicted in April that financial markets would plummet,but refused to predict when the stock market collapse would come.
"I'm not making any firm predictions about when this will collapse," said veteran investor and president of A. Gary Shilling & Co who, if anything, has no doubt that it will occur at some point. "At some point, boy, there will be a lot of blood on the ground," he said.
Leading stock market investors predict historic markets fall
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