Stock Market Crash: Top Investor Warns 3rd Leg of Bear Market Coming

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'Bear markets end with outright disgust': Top investor Peter Boockvar warns that a third leg of the sell-off is coming as investors remain too optimistic about corporate earnings and a Fed pivot

that he thinks investors wrongly believe that the Fed will pivot in the third quarter this year, and that the central bank will instead keep rates elevated through the end of the year. As time goes on, this will weigh on economic growth, he said, and lead to a decline in earnings that the market isn't pricing in currently.

He continued:"It only goes the other way. So I think a multiple of 12, 13x is where we're going to settle out at." "The third phase of the bear market is everyone throws in the towel, and no one wants to own a stock again," he told Wealthion."And as long as you still have people that want to buy the dip, as long as you have people that think okay once the Fed's done raising interest rates and inflation rolls over, everything's fine — that doesn't end bear markets. Bear markets end with outright disgust.

When it comes to Boockvar's outlook on market sentiment, indicators show a rebound in confidence in recent months, which has fueled the rally.

 

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