Alan Greenspan Warns Investors Run For Cover

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Oh my goodness guys one of the biggest names in economics alan greenspan says run for cover from stocks okay we got to read these comments here that came out of him and then we’re gonna go into i’m gonna make a few points based upon this all right i hope you enjoy this as always hit the thumbs up let’s get straight into this guy’s alan greenspan the former federal

Reserve chief who called out the tech fueled rally in the mid 90s as irrational exuberance is now giving investors a new warning in a cnn interview greenspan said it is unlikely that the current market would stabilize and then take another big leg higher he says quote it would be very surprising to see it sort of stabilize here and then take off again talking about

The stock market’s okay he and greenspan said markets could still go up but at the end of that run run for cover he says run for cover greenspan told cnn the bull market is over appointing too how stocks have fumbled in recent days we’ve talked about this many times in the channel like over the past six nine months most stocks have been a disaster met most stocks

I track most stocks i know of that people own out there are down 20 30 40 some even 50 plus percent depending on the sector okay so it’s not like it’s just been kind of the weakness in the past few days like it’s been weak for a while all right now alan greenspan for a little more knowledge on alan greenspan all right he basically worked as a chair of the federal

Reserve from 1987 to 2006 it’s a very long time to be the chair of the federal reserve okay nearly a 20-year period and just so you know that’s one of the most important jobs you possibly have in the united states all right now some people say he’s a rock star he did amazing and that people say it was his easy money policies that basically caused the dot-com bubble

In subprime mortgage crisis so you have people on both sides that kind of you know some love him something he was great and he’s a genius when it comes to economics some say he’s not very smart and he made a lot of mistakes as far as you know when he was actual fed chair you know it depends on your opinion all right now as far as the economists i just want to play a

Quick clip for you guys from warren buffett’s like a 20 or 30 second clip from warren buffett here you go and their life studying it can you name me one super wealthy economist that’s ever made money out of securities you know i may just go down the list no no change kane actually in his early years tried to make money in stocks by predicting what business would

Do and he gave it up and then he went over to a gram type approach i mean it’s very interesting to read his history on us because he thought he could by looking at various economic variables pick what he called the credit cycle and making a lot of money and and he what broke a couple times and doing it had to borrow from people and then he settled on buying good

Businesses cheap that he understood and concentrating his investments and he did very well it’s an interesting history but if you if you look at the whole history of them you know they don’t make a lot of money buying and selling stocks but people who buy and sell stocks listen to him which is a little trouble about so just want to play a little clip for you guys

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To kind of hear what warren buffett’s opinion was on economist alright so as far as the markets today at least as i’m taking these screenshots which i took these about 40 or 50 minutes before the market closed it was a down slightly day sp500 led the the market a little bit lower down around 0.37% as far as some stocks i own i was kind of surprised because a lot

Of my stocks were pretty green today and you know especially facebook and cruz so i was a little surprised you know we had a lot of green stocks a tesla was a one that was down a lot okay so i want to talk about this now since i’ve been in the stock market i want to talk about some periods of time on where where you know people felt like the market was at the end

It was going to go down massively from here and you know it was the end of the world type situation just since i’ve been the stock market around 2008-2009 i started investing really like 2009 was like when i first started buying stocks so there was a few different periods there’s about four four or five different periods since i’ve been in stock market where felt

A lot of people were coming out and saying the market was over okay the first one was it you know kind of mid to late 2010 we have this period where the stock market just went down and down it reached up close to 1400 this is sp 500 by the way and next thing you know over a few months span it was down you know to 1200 level even a little lower than 1200 level a

Lot of people felt like oh we’re weren’t even going to have a recovery from the great recession it was just a false recovery and whatnot and this wasn’t gonna work out then you know things bounce back bounce back income a 2011 late 2011 the market dips massively okay we’re up well over 1500 as far as the s&p 500 goes and mark in a very short amount of time

About a three-month span four months span the market drops down to under 1300 as far as the s&p 500 goes and at that time i couldn’t hear anything other than people talking about double-dip recession and how we were gonna have another massive recession and it was just a minor correction we had and now we’re gonna have a huge you know recession now and whatnot

Double-dip recession was the hottest term in 2011 in the financial market okay everybody was talking about double-dip recession double-dip recession and it never came and the market has continued higher and higher and higher and higher then we got to kind of a goldilocks period from mostly 2012 to 2015 it was pretty solid then toward the end of 2015 we had a couple

Corrections basically in the stock market and both those times both those dips a lot of people felt like maybe this was the end of the bull market a lot of people felt like we were at the end of the cycle and whatnot and a lot of people especially on that second dip in the market really felt conviction around that and needless to say and we just kept going up and

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Up and up and up and then we back in round it was around january february we had some more weakness in the stock market and some people felt like oh my gosh is the end of the bull market then we bounce back bounce back and then come to now the markets have fallen dramatically you know from sp 2900 ish so now we’re in the 2500 range in the s&p 500 and a lot of

People feel like now is the time where we are at the end of the road so needless to say since i’ve been the stock market imes now every single year the bears are always gonna say the markets going down instead of the road we have too much debt this and that and there’s some people out there that are consistently bearish and that’s that but i’m talking about people

That might have been bulls or people that kind of play the middle ground that we’re feeling bearish 2010 we had that 2011 we had that 2015 we had that in 2018 we’ve had two different time periods where we’ve had that okay now let’s talk about the like if the market continues down alright so let’s say in 2019 which we’re only about a week or two away from 2019 right

Let’s say that in 2019 the market continues lower from this range of you know we’re around 2,500 2,400 somewhere in there and the s&p 500 right now let’s say things continue to get worse in the market the market goes down and down and down in 2019 alright let’s say we get down to like a mm level or 2100 level something in there right which would be a dramatic

Drop that would put us all the way back to like 2014 type levels right we’re gonna ask ourselves would that makes sense with the market continuing to deteriorate would that actually make sense all right let’s say yes and let’s say no okay so first yes absolutely that would make sense if earnings go negative earnings have to go negative in the stock market for

Really to get the market to continue to go down in a big way like that or we have to start getting like 8 plus percent on savings accounts in t-bills or something like that that would make people flood out stocks because they feel like you know it’s not worth being in stocks because you can just put your money in a savings account or treasury bills or something like

That and make 8 plus percent a year on those so if we had something like that happen yeah is it totally would totally make sense for 2019 to be a horrible year the market to go down and down and down and you know with us have a negative year in the stock markets overall and obviously if there’s a big recession that happened or something yeah absolutely it wouldn’t

Make sense and you know if the earnings were negative of companies they started going down and down and down that absolutely makes sense for the markets to have weakness now and to continue to have weakness in 2019 however if that doesn’t happen then that would be a no okay so if ernie’s continue to grow in 2019 and savings accounts and t-bills stay around where

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They are now maybe if they even if they go up slightly the market basically has to go up or really doesn’t make sense for it to go down valuations right now are the lowest they have been in years valuations are the absolute lowest they have been in years and years so for the markets just to you know go down and basically well the earnings go up it just doesn’t make

Sense especially when you take on the basis that valuations are literally at the lowest they’ve been in five plus years especially when you look at four or ps and what companies are expected to earn this upcoming year which have been much more conservative of late okay so when you look at all this yeah the markets make sense to go down or you continue to go down

In 2019 if the economy gets bad okay and i’m talking about bad work earnings literally go negative companies start making less in 2019 and 2018 any other situation than that or if is magically somehow we start getting eight they’re nine percent of the savings accounts and tea bells and stuff like that which that’s not going to happen okay unless we’re in that type

Of situation the more it pretty much has to go higher or valuations will get to such low levels that it literally won’t make sense for any logical person to not be invested in stocks at that particular time okay so that’s a bottom line there alan greenspan coming out and saying what he said for its run for cover something like that like if he really feels like

Like we’re in an economic doom it’s gonna get so ugly or something like that then sure it does make sense to run for cover but unless you feel like that and unless you have data to back up and say well this and this and this and this you know and it has to be different data then the data you’ve had for the last let’s say you know eight or nine years or something

Like that right it has to be something more you can’t just say well federal debt or something is the federal debts been high for a while you can just say this debt or that debt you have to point out something new there’s some new developments out there that you can say okay this is why we’re at the end of the bull market as far as the market will just continue go

Down for the next year or two years or something like that and we’ll have an awful bear market so that’s kind of my point as far as that if unless you feel like that it just doesn’t really make sense as far as me personally i’ll continue to buy undervalue stocks all the way you know in if the market goes lower i’ll buy undervalued stocks all the way to the bottom

I’ll buy them all the way up i’ve been a buyer of the stock since 2009 i’ll be a buyer stocks to 20 90 okay i hope you guys enjoyed this as always i just want to close today’s videos out on a little quote for you i think you guys will enjoy this little quote warren buffett loves this one check this out guys please

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Alan Greenspan Warns Investors "Run For Cover" By Financial Education

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