'A terrible environment for equities': Market veteran predicts when stocks will pull back — and how to trade it

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Market veteran predicts when stocks will pull back — and how to trade it

The U.S. equity market is flashing warning signs, according to chief market strategist Chris Watling. Watling, also the chief executive of London-based Longview Economics , expects stocks to fall into a bear market over the next three to six months thanks to lofty valuations driven higher since September last year. The S & P 500 was trading at 3,985 on Wednesday morning at a price-to-earnings ratio of nearly 20x even as the U.S. central bank attempts to tighten financial conditions.

"If you want to make money, you should be short equities over the three to six-month timeframe," he said. "You should be overweight government bonds, should probably have a little bit in cash, and there's certain commodities you should be playing, most likely the precious metals." He cautioned, however, that this strategy is very aggressive and unsuitable for the average investor.

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I’d believe him when hell freezes over

Of course it’s terrible. The fantasies of the Democrats never work in real life. They will destroy the stock market and the country if they are allowed to continue in office.

Wen moon

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