Tags: byron wien | market | stock | correction | crash

Blackstone's Byron Wien: 15 Percent Stock Market Crash Looms


By    |   Thursday, 11 January 2018 10:50 AM

Economic guru Byron Wien advises savvy investors to be very wary about the seemingly endless Trump bull-run stock-market rally.

Wien, vice chairman of Blackstone Private Wealth Solutions, is warning investors that a 10 to 15 percent stock market pullback is virtually unavoidable, CNBC reported.

"Sentiment is bordering on the euphoric state. When investors think they can't get into trouble, they usually do," Wien recently told CNBC.

"We're vulnerable to a correction," he said.

"The market needs to have some kind of correction. There are some excesses in it. So I fully expect it to happen," he said.

"The year will end higher than it started no matter what happens along the way," he said, adding that he'd "absolutely buy" stocks on a correction because underlying fundamentals remain strong.

For now, Wien is shifting his investment strategy to the overseas markets.

"India is still attractive. I think Japan is still attractive," Wien said.

Thursday on Wall Street, U.S. stocks rose in a broad-based rally across sectors as speculation over China halting U.S. bond purchases eased and investors focused on quarterly earnings reports and higher oil prices, Reuters explained.

“It’s back to a generally positive mode,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.

The S&P and the Nasdaq snapped their six-day rally on Wednesday after Bloomberg News reported Chinese officials had recommended halting its U.S. bond purchases, which China dismissed later.

Also weighing on the dour sentiment was a Reuters report on Wednesday that Canada is increasingly convinced U.S. President Donald Trump would soon announce an exit from the North American Free Trade Agreement.

“I think it is very disruptive. We’ve seen a lot of firms concerned about supply chains going forward, and many have tried to secure alternative supply-chains if the President pulls out of NAFTA. But the market is just taking this in a stride now,” Brown said.

For his part, Trump has been touting the record stock market on Twitter. 

"The Stock Market has been creating tremendous benefits for our country in the form of not only Record Setting Stock Prices, but present and future Jobs, Jobs, Jobs. Seven TRILLION dollars of value created since our big election win!" he tweeted last week.

(Newsmax wire services contributed to this report).

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Economic guru Byron Wien advises savvy investors to be very wary about the seemingly endless Trump bull-run stock-market rally.
byron wien, market, stock, correction, crash
Thursday, 11 January 2018 10:50 AM
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