Major Bank, Economists Agree: Market Collapse Will Strike in 2013 – Money News 01-09-13

Salient to Investors:

JPMorgan report that stocks have retraced the pattern from the last two big market rallies and now face a decline in 2013 of over 50%.

Nouriel Roubini at NYU says there is a chance of an economic “perfect storm” in 2013 due to a worsening eurozone crisis, a hard landing for the Chinese economy, and war in the Middle East that could push oil prices above $200 a barrel.

Jim Rogers says investors should be very worried about 2013, citing the cycle of slowdowns every four to six years.

Robert Wiedemer predicts 50% unemployment, a 90% stock market drop, and 100% annual inflation starting in 2013, and blames Bernanke and Greenspan among others. Sam Stovall at S&P says Wiedemer makes a compelling argument and Paul Farrell at MarketWatch  called Wiedemer’s work “your bible.”

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Billionaires Dumping Stocks, Economist Knows Why – MoneyNews 08-29-12

Salient to Investors:

Berkshire Hathaway has been drastically reducing his exposure to stocks that depend on consumer purchasing habits, including Johnson & Johnson and Intel.

John Paulson in Q2 2012 dumped 14 million shares of JPMorgan Chase, his fund’s entire position in Family Dollar and Sara Lee.

George Soros recently sold nearly all of his bank stocks, including JPMorgan Chase, Citigroup, and Goldman Sachs.

Robert Wiedemer expects a large drop in the stock market due to the reckless Fed printing a massive amount of money out of thin air in an attempt to stimulate the economy – once these funds pass through the reserves and hits the markets, inflation will surge, causing interest rates to increase dramatically and real estate values to collapse, causing the stock market to collapse.

Wiedemeyer says companies will be spending more on borrowing costs than business expansion costs, causing lower profit margins, dividends, and hiring, and more layoffs.

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