If you ask me today, I would say we would make new highs in the US stock market. Now I use that since it is the largest and most important stock market. I would suspect we would see new highs. We may even have a blow-off bubble. It has been a while since we have had a blow-off bubble in any stock market in the world.
So it may turn into a bubble. I do expect at least new highs before the whole thing collapses. But I want to tell you again, this is not good for any of us in the long run. In the long run, when this comes to an end, we are going to have the worst financial markets in my life time. I know I am older than you, so it is going to be the worst in your lifetime too.
In 2008, we had a big problem because of too much debt all over the world. Since 2008, debt has risen higher and higher and higher everywhere. Even China has a lot of debt now. In 2008, China had a lot of money saved for rainy days. It started raining and China started spending the money.
They helped save the world, but even China has a lot of debt now. In Germany, of all places, everybody has a lot of debt now. So next time around – I know some people would say we are never going to have a bear market again – but if you believe them. you should not listen to me.
I know we will have a bear market again, and I know the next one is going to be very-very bad. And when I say very bad, markets will go down 50-60-80, but some stocks will go down 80-90%. That is what bear markets do.
I am not trying to spread fear, I am just telling you how markets work. Do not listen to me, look it up. Bear markets always work that way.
- Source, Economic Times
