2007 All Over Again… Banking Crisis Imminent
by John Rubino via DollarCollapse.com,
ZeroHedge.com
Jul 11, 2016
1. The overall investment outlook is really, really dismal. “There is no asset out there that is cheap,” Kadnar says. None.
2. The outlook for U.S. stocks is terrible. GMO’s central forecast — which is a directional estimate more than a precise prediction — warns that U.S. large- and small-cap stock indices are now both so overpriced compared to history that they will probably lose value, compared to inflation, over the next seven or so years.
3. In the wake of the emerging markets slump and now Brexit, investors are becoming almost as dangerously fixated on U.S. stocks as they were (disastrously) in 2000, according to GMO. Kadnar says that once again, clients are starting to ask why anyone needs to own anything other than the S&P 500.
4. Investors also are likely to end up losing — after inflation — over the next seven years or so on U.S. bonds, cash, and small-cap international stocks, GMO’s current central forecast predicts. The firm also sees minuscule post-inflation, or “real” returns, on both international large-cap stocks and emerging-market bonds.
The Rest…HERE
