{"id":24082,"date":"2017-05-26T09:56:09","date_gmt":"2017-05-26T14:56:09","guid":{"rendered":"http:\/\/olduvai.ca\/?p=24082"},"modified":"2017-05-26T09:56:44","modified_gmt":"2017-05-26T14:56:44","slug":"mark-yusko-im-telling-you-right-now-the-us-is-going-to-have-a-massive-crash","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=24082","title":{"rendered":"Mark Yusko: I\u2019m Telling You Right Now, the US Is Going to Have a Massive Crash"},"content":{"rendered":"<header>\n<h3 class=\"flipboard-subtitle\"><a href=\"http:\/\/www.mauldineconomics.com\/editorial\/mark-yusko-im-telling-you-right-now-the-us-is-going-to-have-a-massive-crash\">Mark Yusko: I\u2019m Telling You Right Now, the US Is Going to Have a Massive Crash<\/a><\/h3>\n<\/header>\n<div class=\"body\">\n<p><em>\u201cI\u2019m telling you right now, the US is going to have a crash and it will be massive,\u201d <\/em>asserted Mark Yusko at Mauldin Economics\u2019 Strategic Investment Conference.<\/p>\n<p>In his keynote speech, Mark Yusko, CIO of Morgan Creek Capital Management, outlined where he sees the biggest opportunities and risks for investors are today.<\/p>\n<p><strong>Demographics Are Destiny<\/strong><\/p>\n<p>Mark began with the big story of the SIC 2017\u2014demographics.<\/p>\n<p>He believes that efforts to generate growth through fiscal stimulus and tax cuts will prove futile because the working-age population in the US is declining. As such, consumption\u2014which makes up 70% of the US\u2014will continue to fall.<\/p>\n<p>Mark thinks instead of taking off, the US economy is on the cusp of a recession.<\/p>\n<p><strong>Headed for Recession<\/strong><\/p>\n<p>Mark points to key indicators such as credit growth and tax revenues, which are declining, as proof a recession is around the corner.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/editorial\/170525OPYuskoimage1.png\" alt=\"\" \/><\/p>\n<p>Source: <a href=\"https:\/\/fred.stlouisfed.org\/\">St. Louis Fed<\/a><\/p>\n<p>\u201cEvery time a President leaves the White House after two terms, there is a recession within the first year of the new administration. I believe this time will be no different.\u201d<\/p>\n<p>So, what does this mean for investors?<\/p>\n<p><strong>Sell US Stocks<\/strong><\/p>\n<p>Since 2012, the earnings of S&amp;P 500 companies have gone nowhere, yet the market is up 70%. This rise has all been multiple expansions. As such, US equities are one of the most expensive class of assets in the world today.<\/p>\n<p>With the S&amp;P 500 trading at record highs, top investment management firm GMO projects returns will be negative over the next seven years.<\/p>\n<p><img decoding=\"async\" src=\"http:\/\/ggc-mauldin-images.s3.amazonaws.com\/uploads\/editorial\/170525OPYuskoimage2.png\" alt=\"\" \/><\/p>\n<p>Source: <a href=\"https:\/\/www.gmo.com\/\">GMO<\/a><\/p>\n<p>With US markets fully priced, Mark says his firm is deploying their capital elsewhere.<\/p>\n<p><strong>European Banks Are a Buy<\/strong><\/p>\n<p>Despite all the hype around US financials due to \u201cTrumponomics,\u201d Mark points out that European financials have vastly outperformed their US counterparts since the beginning of the year.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Mark Yusko: I\u2019m Telling You Right Now, the US Is Going to Have a Massive Crash \u201cI\u2019m telling you right now, the US is going to have a crash and it will be massive,\u201d asserted Mark Yusko at Mauldin Economics\u2019 Strategic Investment Conference. In his keynote speech, Mark Yusko, CIO of Morgan Creek Capital Management, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[15365,500,501,15364,15363,827],"class_list":["post-24082","post","type-post","status-publish","format-standard","hentry","category-economics","tag-mark-yusko","tag-market-collapse","tag-market-crash","tag-maudlin-economics","tag-stephen-mcbride","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24082","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24082"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24082\/revisions"}],"predecessor-version":[{"id":24084,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/24082\/revisions\/24084"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24082"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}