Experts Predicting 60 Percent Correction

David Tice, the CEO of Tice Capital, and technical analyst Abigail Doolittle told CNBC today that they believe the Dow could be on the brink of a correction, with declines ranging anywhere from 30 to 60%. 

Tice cited a growing disillusion with the Quantitative Easing program of the Federal Reserve and a weakening confidence internationally with Central Banks as the primary motivators behind the downturn. “Longer term, it’s not going to work. This reminds me of what happened in ’99 and ’06 and ’07 when I was warning people about it. People were complacent.” Tice told CNBC. 

He continued, “Trees don’t grow to the sky and really if you look underneath the economy, you can see that our unemployment rate is benefiting from a decline in the labor participation rate, a move to part time employees. Even people like Janet Yellin are talking about how certain asset prices are stretched.” 

“This has happened over thousands of years of monetary history where governments want to make promises and give out bennies to their constituency and they do it by debasing the currency.” said Tice.  “It’s likely to be a 30 to 60% decline. It’s going to be a period of extreme turmoil.”

Abigail Doolittle, the founder of Peak Thomas Research told CNBC’s Squawk Box, “It’s tough to know exactly what the catalyst will be. But that’s the very nature of that kind of selloff. They start slowly and then happen very suddenly.” 

Doolittle has been analyzing historical trends of the Dow for years. “You can see that the entire bull market trend over the last five years has started to reverse.” she said. “Unfortunately, I think it could crash similar to what happened in 2007″

This entry was posted in Precious Metals News. Bookmark the permalink.

Comments are closed.