Special Guest: Bert Dohmen
Publisher of the Wellington Letter
also with Ty Andros & host Gordon T Long
17 Minutes, 40 Slides
In Part IV of this series with tow noted expert market watchers, we ask Bert Dohmen and Ty Andros whether DOW 20,000 is directly ahead or DOW 5,000 ..... and when?
Both Bert Dohmen and Ty Andros firmly believe the financial markets are only being artificially held up by liquidity and credit flows and the market has become disconnected from economic and financial reality. Both cite when companies like Amazon make no profits and no one cares, it reminds both experienced investors of 1999, prior to the Dot.com bubble imploding. Through the use of 40 slides they share their thoughtful insights and experiences.
Bert Dohmen - Wellington Letter
Bert is as bearish for 2014 as he was prior to his profitable 2008 financial crisis call, for many similar reasons. He is somewhat optimistic near term that the markets will hold up through year end, but after that investors should be prepared for the worst.
Supporting his conclusions is the steady fall in consumer consumption and spending which he sees as presently getting worse. Consumer spending slowdowns usually precede market drops and it peaked in the US in May of this year. The steadily deteriorating growth in US real personal income no longer supports the current profit expectations and is presently only being camouflaged by Federal Reserve and PPT intervention.
Ty Andros - Tedbits Newsletter
Ty is extremely bearish and believes there is a major market market move down on the horizon, most likely by late 2014. He fully expects markets at that juncture to fall below the 2008 lows. Of his many concerns, ranging from Dodd-Frank and Obamacare to Janet Yellen's "Tobin" direction, he points out to listeners the Wolf Wave in profit margins which helped him successfully navigate around the the 2008 crisis.
These are two well seasoned investors who both called the 2008 Crisis. Seldom have they been this bearish though both say these artificial liquidity addicted markets could keep going for awhile longer. They both share what investors should be doing now in preparation for their outlooks.
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