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Rupert Murdoch Tweets: 'Timely Correction or Major Global Crisis?'

Rupert Murdoch Tweets: 'Timely Correction or Major Global Crisis?'
Rupert Murdoch (Getty Images)

By    |   Friday, 21 August 2015 11:48 PM

News Corp. Chairman Rupert Murdoch fears we may be approaching another global financial crisis.

The billionaire media mogul took to Twitter to voice his concern about the situation facing markets and how some central banks would struggle to bounce back if things worsened, Australia’s Mi9.com reported.

"All prices dropping not just shares. Timely correction or sign of major global crisis in near future?" he wrote.

He also said that central banks would have “few tools” to fight another recession.

“Mountains of cash everywhere, but nobody investing.”

His warnings come after fears of a China-led global economic slowdown drove Wall Street to its steepest one-day drop in nearly four years on Friday and left the Dow industrials more than 10 percent below a May record.

Wall Street's sell-off this week suggested investors are growing nervous about paying high prices for stocks at a time of minimal earnings growth, tumbling energy prices and an expected rate hike by the Federal Reserve that could gradually usher the end of almost a decade of easy money.

Stocks have seen few large moves this year, staying in a narrow range throughout 2015, but volatility spiked this month once China surprisingly devalued its currency. Weak Chinese manufacturing data on Friday, and another drop in China's stock market, rattled investors' nerves and led to Friday's tumble.

The Standard & Poor's 500 index dropped 64.84 points, or 3.2 percent, to close at 1,970.89. The Dow Jones industrial average fell 530.94 points, or 3.1 percent, to 16,459.75. That's 10 percent off its high, a correction. The Nasdaq slid 171.45 points, or 3.5 percent, to 4,706.04.

"You're definitely witnessing a perfect storm in terms of China timing, people on vacation that affects liquidity, and you've got a lot of questions on the Fed and people are obviously focused on oil," Andrew Frankel, co-president of Stuart Frankel & Co in New York, told Reuters.

Murdoch isn’t alone in fearing that the stock-market bloodbath is over.

Noted investor Bob Doll told CNBC that he doesn’t think the correction is over.

"I think we're rapidly reaching a near-term oversold, from which we'll get a bounce. But I don't believe this corrective period is over yet. Most of the decline is probably behind us from a point standpoint. But I think we have more time to sort this out," the chief equity strategist and senior portfolio manager for Nuveen Asset Management said in an interview with CNBC.

Because of that, he's waiting before putting his money to work.

"Corrections in bull markets tend to be sharp, they tend to happen quickly but they don't turn around and go back up on a V-bottom. I just want some time to pass and seek some consolidation," he said.

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News Corp. Chairman Rupert Murdoch fears we may be approaching another global financial crisis.
Rupert Murdoch, Tweets, Global Financial Crisis, Correction
Friday, 21 August 2015 11:48 PM
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