The stock market’s recent plunge wasn’t a one-time event, says Komal Sri-Kumar, chief investment strategist at TCW, one of the country's biggest money managers.
The Standard & Poor’s 500 Index is headed down another 19 percent, he maintains.
The S&P 500 dropped 5.4 percent in the week of May 3 – to 1,111. It's now at about 1120. But there is a bigger drop to come, Sri-Kumar told Bloomberg. “We are due for a second dip,” he said.
“I think the global market correction has just begun. We are just about one-third of the way there. I would see the S&P 500 well below 900, and the Dow Jones (Industrial Average) below 9,000.”
The Dow recently was at about 10,500.
Investment guru Marc Faber, editor of the "Gloom Boom & Doom Report," also is bearish.
“I don’t think Greece is the cause of the selloff,” he told Bloomberg.
“It’s a catalyst. The cause of the selloff is that the market ran up too much too quickly. From here we will have a more meaningful decline, and maybe 1,120 was the high (for the S&P 500) for the year.”
Plenty of others feel the same way.
“The elements you have seen over the last few days have injected fear back into the equation,” Doug Roberts, chief investment strategist for Channel Capital Research, told The New York Times.
“People are looking for an excuse to go to the doors.”
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