Tags: Bleier | stocks | headed | tumble

CreateCapital’s Bleier: Stocks Headed for a Tumble

By    |   Thursday, 16 August 2012 02:00 PM

Fundamentals don’t justify the current level of stock prices, and the market will soon take a major fall, says Scott Bleier, founder of CreateCapital Advisors.

“We’re going to make a new three-year high sometime in the next few weeks,” he tells Yahoo. “Then be careful, because I think the market [Dow Jones Industrial Average] drops easily 1,000 points — quickly.”

That 1,000-point move would represent an 8 percent decline from the recent level of 13,228.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist. 

The market’s recent gain almost to four-year highs makes no sense, given the slowdown in earnings and the economy, Bleier says.

“We are on this ever-spinning hamster wheel. The economy is weak so that means more QE [quantitative easing by the Federal Reserve] so the market stays higher.”

And if positive economic data emerge, investors buy stocks off that news, he adds.

“No one can figure out, with the dramatic amount of bearishness and the individual investor having completely left the market, how the market could be sitting at three-year highs.”

Bleier has a colorful term —“the most hated rally” — for stocks’ recent move.

“You have to throw away everything you’ve learned about markets to put your money in,” he said.

Marc Faber, publisher of the Gloom Boom & Doom Report, agrees with Bleier’s forecast.

“Maybe we make a marginal new high, and then we drop again. But I think 2013 will be a difficult year for equities,” Faber tells CNBC.

Editor's Note: 'It’s Curtains for the US' — Hear Unapologetic Warning from Prophetic Economist.

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Thursday, 16 August 2012 02:00 PM
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