{"id":3080,"date":"2020-04-28T03:23:17","date_gmt":"2020-04-28T03:23:17","guid":{"rendered":"https:\/\/www.maxlee.info\/blog\/?p=3080"},"modified":"2020-05-22T04:39:49","modified_gmt":"2020-05-22T04:39:49","slug":"expert-who-called-the-2008-crisis-says-the-signal-to-sell-stocks-is-coming-soon","status":"publish","type":"post","link":"https:\/\/www.maxlee.info\/blog\/news\/expert-who-called-the-2008-crisis-says-the-signal-to-sell-stocks-is-coming-soon\/","title":{"rendered":"Expert who called the 2008 crisis says the signal to sell stocks is coming soon"},"content":{"rendered":"<p>It is a bumper week of U.S. corporate earnings and one that will tell us more about the devastating impact of coronavirus on the economy.<\/p>\n<p><!--more--><\/p>\n<figure id=\"attachment_3081\" aria-describedby=\"caption-attachment-3081\" style=\"width: 1200px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" src=\"\/blog\/wp-content\/uploads\/2020\/05\/MW-IF268_Dollar_20200427071625_ZG-1200x675.jpg\" alt=\"The dollar is the world\u2019s biggest problem, former Goldman Sachs hedge-fund manager Raoul Pal said.\" width=\"1200\" height=\"675\" class=\"size-large wp-image-3081\" srcset=\"https:\/\/www.maxlee.info\/blog\/wp-content\/uploads\/2020\/05\/MW-IF268_Dollar_20200427071625_ZG-1200x675.jpg 1200w, https:\/\/www.maxlee.info\/blog\/wp-content\/uploads\/2020\/05\/MW-IF268_Dollar_20200427071625_ZG-800x450.jpg 800w, https:\/\/www.maxlee.info\/blog\/wp-content\/uploads\/2020\/05\/MW-IF268_Dollar_20200427071625_ZG-768x432.jpg 768w, https:\/\/www.maxlee.info\/blog\/wp-content\/uploads\/2020\/05\/MW-IF268_Dollar_20200427071625_ZG.jpg 1320w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><figcaption id=\"caption-attachment-3081\" class=\"wp-caption-text\">The dollar is the world\u2019s biggest problem, former Goldman Sachs hedge-fund manager Raoul Pal said.<\/figcaption><\/figure>\n<p>Published: April 28, 2020 at 12:29 p.m. ET, By Callum Keown<\/p>\n<p>The busiest week of earnings season will see Alphabet GOOG, Amazon AMZN, Apple AAPL, Tesla TSLA, Boeing BA, and Exxon Mobil XOM all report results. Despite fears it could be the worst quarterly earnings seasons since 2009, the Dow Jones Industrial Average DJIA scored its fourth consecutive session of gains on Monday and was set to open higher on Tuesday.<\/p>\n<p>However, former Goldman Sachs hedge-fund manager Raoul Pal said the dollar was the world\u2019s \u201cbiggest problem\u201d and that the signal to sell equities was coming soon.<\/p>\n<p>He said the narrative that the Fed printing money would causes a dollar collapse was \u201cvery wrong.\u201d<\/p>\n<p>The chief executive of Global Macro Investor, who predicted the 2008 financial crisis, said: \u201cYou see the biggest problem the world faces is the dollar. We are in a vicious doom loop where slowing growth causes the dollar to rise, which causes slower growth, which causes the dollar to rise, as all borrowers play musical chairs to get access to the dollar to service debts.<\/p>\n<p>\u201cDollar swap lines, QE, jawboning, etc. have done nothing to stop this,\u201d he added in a post on Twitter.<\/p>\n<p>He said no printing of money \u2014 by the Federal Reserve \u2014 would solve what he described as a \u201cstructural\u201d problem. \u201cAll attempts to create more money to solve the dollar standard issue tend to devalue all fiat versus gold. Gold is rallying on debt deflation probabilities.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">And that brings us back to velocity of the money that the Fed is printing&#8230; it is plummeting and that is crowding out the weakest borrowers, in this case EM FX. This is the very essence of a DEBT DEFLATION. <a href=\"https:\/\/t.co\/sfzOtRlNJ3\">pic.twitter.com\/sfzOtRlNJ3<\/a><\/p>\n<p>&mdash; Raoul Pal (@RaoulGMI) <a href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1254112583260528644?ref_src=twsrc%5Etfw\">April 25, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201cMy guess is that the next debt deflation signal will come when bonds begin to price in negative interest rates. That day is coming soon&#8230; and that will be the signal to sell equities and the insolvency phase will begin.\u201d<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Bitcoin will be part of the equation but has yet to make any serious move against this backdrop. Its time will come&#8230; <a href=\"https:\/\/t.co\/O2tHPqAhOr\">pic.twitter.com\/O2tHPqAhOr<\/a><\/p>\n<p>&mdash; Raoul Pal (@RaoulGMI) <a href=\"https:\/\/twitter.com\/RaoulGMI\/status\/1254112596468412416?ref_src=twsrc%5Etfw\">April 25, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong>The stat<\/strong><\/p>\n<p>Investors are giving companies a pass on earnings, according to Bespoke Investment Group. More than 200 companies have reported first-quarter earnings in the past two weeks and stocks missing earnings per share estimates have seen a one-day decline of 0.72% on their \u201cearnings reaction days.\u201d Historically, stocks missing EPS estimates have fallen 3.56%.<\/p>\n<p>Source: <a href=\"https:\/\/www.marketwatch.com\/story\/expert-who-called-the-2008-crisis-says-the-signal-to-sell-stocks-is-coming-soon-2020-04-27?mod=home-page\">www.marketwatch.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is a bumper week of U.S. corporate earnings and one that will tell us more about the devastating impact of coronavirus on the economy.<\/p>\n","protected":false},"author":1,"featured_media":3081,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-3080","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/3080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/comments?post=3080"}],"version-history":[{"count":0,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/posts\/3080\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/media\/3081"}],"wp:attachment":[{"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/media?parent=3080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/categories?post=3080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.maxlee.info\/blog\/wp-json\/wp\/v2\/tags?post=3080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}