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Jack Ablin: Stocks Could Plunge 15% by Early Next Year


By    |   Friday, 04 October 2019 09:51 AM

Cresset Capital’s Jack Ablin warns investors that the volatile stock market could slide 15 percent by early next year.

“I believe we’re entering a cyclical downturn,” the firm’s chief investment officer told CNBC. “The market could respond downward 10 to 15%,” said Ablin, who has $5.4 billion in assets under management.

To protect his portfolio from wild market swings, Ablin has moved away from his typical investment strategy. Instead of depending completely on stocks for gains, he shifted 30% of his assets to private equity and cash in August, CNBC.com explained.

“The economic condition here at home isn’t really too conducive for risk-taking,” he said. “The manufacturing ISM came in lousy. We saw nonmanufacturing slightly better, but still disappointing.”

He’s also worried about headline risks surrounding the U.S.-China trade war, efforts to impeach President Donald Trump, and the 2020 election, CNBC said.

“As a data guy, it’s really hard to navigate the headlines,” he said.

However, Ablin does think an eventual market dip can lead to bargain-hunting by investors.

“That would allow us to take some of the dry powder that we’ve put aside over the last several months and redeploy it back into the market,” Ablin said.

However, othertop respected economic voices have completely different predictions.

Investment guru Ed Yardeni predicts Wall Street’s bull-run stock market will continue to charge deeper into the record books.

The Yardeni Research president believes between now and the end of next year, the S&P 500 index will soar 17% from current levels.

“I’ve got 3,500 as my target for next year,” he recently told CNBC. “We’ll get there on higher earnings with maybe somewhat higher valuation as the perception continues to be that interest rates aren’t going up much, if at all,” said Yardeni, also a Newsmax Finance Insider.

“This has been a very interesting bull market. It seems to every now and then let the leaders become laggards and the laggards become leaders. There is a lot of rotation going on in this market from the get-go,” he said. “I don’t know if I’d read too much into it,” he said.

“The economy is doing fine and the fundamentals for stocks moving higher are still intact,” Yardeni said.

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Cresset Capital’s Jack Ablin warns investors that the volatile stock market could slide 15 percent by early next year.
jack ablin, stocks, market, investors
Friday, 04 October 2019 09:51 AM
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