Stock market crash: CIO at $5.8 billion firm says 30-40% drop ahead

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A chief investment officer at a $5.8 billion firm lays out why a dot-com-style bubble brewing in stocks will culminate in a 30-40% crash — and says the Fed could set it off

Yet the major players on Wall Street don't see such a scenario playing out soon, with the economic recovery ahead and easy Fed policy in place for the foreseeable future. Neither does Chris Zaccarelli, the chief investment officer at Independent Advisor Alliance, which manages $5.8 billion in assets.

"I think we're definitely well on our way down that path. It's going to be very difficult for the Federal Reserve to pull back on the stimulus that they put into the system too quickly," Zaccarelli told Insider by phone on Thursday. First, the easy financial conditions in place now will continue to drive up valuations. But such conditions will lead to sustained inflation above 2-2.5%, Zaccarelli said.

 

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It would be better and wiser to worry about ClimateAction and the SDGs than about a bubble and a loss of money. This CIO needs a shift in mindset.

In let’s say 10 years, we will be living in an almost completely new world dynamic, and this will then cause competition between the remaining and newly emerged industry players to be fiercer than ever, with greater transparency facilitating greater trust by consumers.

'The Feds* job is to take away the cocktail bowl as the party is getting started.' I forget who said it, but it was as right then as always. * - applies to any Central Bank

Welcome to the community, new Bitcoiners. Make sure you follow lisaMakT She understand Bitcoin and have an unflinching optimism about it. She is for transparency and trust 💯 “Everything is good for Bitcoin.”

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