{"id":34846,"date":"2018-06-06T15:18:31","date_gmt":"2018-06-06T20:18:31","guid":{"rendered":"http:\/\/olduvai.ca\/?p=34846"},"modified":"2018-06-06T15:18:41","modified_gmt":"2018-06-06T20:18:41","slug":"david-stockman-warns-daredevil-market-is-way-over-priced-for-reality","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=34846","title":{"rendered":"David Stockman Warns &#8220;Daredevil&#8221; Market Is &#8220;Way Over-Priced For Reality&#8221;"},"content":{"rendered":"<div id=\"block-zerohedge-page-title\" class=\"block block-core block-page-title-block\">\n<h3 class=\"page-title\"><a href=\"https:\/\/www.zerohedge.com\/news\/2018-06-06\/david-stockman-warns-daredevil-market-way-over-priced-reality\"><span class=\"field field--name-title field--type-string field--label-hidden\">David Stockman Warns &#8220;Daredevil&#8221; Market Is &#8220;Way Over-Priced For Reality&#8221;<\/span><\/a><\/h3>\n<\/div>\n<div id=\"block-zerohedge-content\" class=\"block block-system block-system-main-block\">\n<article class=\"node node--type-article node--view-mode-full\" role=\"article\" data-gtm-vis-recent-on-screen-2077925_22=\"1139\" data-gtm-vis-first-on-screen-2077925_22=\"1139\" data-gtm-vis-total-visible-time-2077925_22=\"100\" data-gtm-vis-has-fired-2077925_22=\"1\">\n<footer class=\"node__meta\">\n<div class=\"submission-wrapper\"><\/div>\n<\/footer>\n<div class=\"node__content\">\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>David Stockman is not backing away from his ultimate bearish position, <a href=\"https:\/\/www.cnbc.com\/2018\/06\/06\/david-stockman-predicts-50-percent-stock-market-plunge.html\">warning viewers of CNBC<\/a> that<em><strong> &#8220;there are some huge surprises lurking out there&#8221;<\/strong><\/em> because &#8220;we&#8217;ve had eight years of monetary expansion that is just off the charts of history.&#8221;<\/p>\n<p>He is certainly not wrong there&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-06_10-37-38.jpg?itok=IDKBf13y\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-06-06_10-37-38.jpg?itok=IDKBf13y\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-06_10-37-38.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-06-06_10-37-38.jpg?itok=IDKBf13y 1x\" alt=\"\" width=\"500\" height=\"252\" data-entity-type=\"file\" data-entity-uuid=\"aa0f03fd-04ef-4522-a3a0-81ed62036997\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>President Reagan&#8217;s Office of Management and Budget director fears an aging stock market rally combined with potential headwinds from President Trump&#8217;s fiscal policy decisions (as well as questionable earnings expectations) means <strong><em>&#8220;it&#8217;s all risk and very little reward in the path ahead.&#8221;<\/em><\/strong><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/player.cnbc.com\/p\/gZWlPC\/cnbc_global?playertype=synd&amp;byGuid=7000023680&amp;size=530_298\" width=\"530\" height=\"298\" allowfullscreen=\"allowfullscreen\" data-mce-fragment=\"1\"><\/iframe><\/p>\n<blockquote><p><strong><em>&#8220;I call this a daredevil market&#8230;This market is just way, way over-priced for reality.&#8221;<\/em><\/strong><\/p><\/blockquote>\n<p>As Nasdaq and Small Caps surge to new record highs, Stockman warns <strong><em>&#8220;the S&amp;P 500 could easily drop to 1,600 because earnings could drop to $75 a share the next time we have a recession.&#8221;<\/em><\/strong><\/p>\n<blockquote><p><strong><em>&#8220;We&#8217;re about eight or nine years into this expansion. Everything is crazily priced. I mean the S&amp;P 500 at 24 times at the end, tippy top of a business cycle.&#8221;<\/em><\/strong><\/p><\/blockquote>\n<p>The current growth cycle has been the second longest on record:<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Expansion%20%281%29_1.jpg?itok=Zo8caleq\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/Expansion%20%281%29_1.jpg?itok=Zo8caleq\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Expansion%20%281%29_1.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/Expansion%20%281%29_1.jpg?itok=Zo8caleq 1x\" alt=\"\" width=\"500\" height=\"265\" data-entity-type=\"file\" data-entity-uuid=\"3858ab05-f1bd-4402-a6a2-eca0fe6563f2\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>But it has been much shallower than the previous cycles:<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Screen%20Shot%202018-05-15%20at%2013.46.14%20%281%29_0.png?itok=jTiPDl4i\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/Screen%20Shot%202018-05-15%20at%2013.46.14%20%281%29_0.png?itok=jTiPDl4i\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/Screen%20Shot%202018-05-15%20at%2013.46.14%20%281%29_0.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/Screen%20Shot%202018-05-15%20at%2013.46.14%20%281%29_0.png?itok=jTiPDl4i 1x\" alt=\"\" width=\"500\" height=\"304\" data-entity-type=\"file\" data-entity-uuid=\"0852297b-7dd5-432d-9a93-5763bd1f1b6c\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>As a former budget director, it is likely no surprise that one of his biggest gripes with the bulls is the notion that President Donald Trump&#8217;s tax cuts are providing a fundamental lift to stocks.<\/p>\n<blockquote><p>&#8220;<strong>These tax cuts are going to add to the deficit in the 10th year of an expansion. It&#8217;s just irresponsible crazy,<\/strong>&#8221; he said.<\/p>\n<p>&#8220;It&#8217;s all going to stock buybacks and M&amp;A deals anyway.<strong> That doesn&#8217;t cause the economy to grow. It&#8217;s just a short-term boost to the stock market that doesn&#8217;t last<\/strong>.&#8221;<\/p><\/blockquote>\n<p>Judging by the highest taxed companies performance relative to the market, Stockman may well have another point&#8230;<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-06_10-45-25.jpg?itok=Q3jrTyFO\" data-image-external-href=\"\" data-image-href=\"\/sites\/default\/files\/inline-images\/2018-06-06_10-45-25.jpg?itok=Q3jrTyFO\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/2018-06-06_10-45-25.jpg\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/2018-06-06_10-45-25.jpg?itok=Q3jrTyFO 1x\" alt=\"\" width=\"500\" height=\"264\" data-entity-type=\"file\" data-entity-uuid=\"38c9d447-43d6-4ca3-9e53-8dff97d4a848\" data-responsive-image-style=\"inline_images\" \/><\/a><\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>David Stockman Warns &#8220;Daredevil&#8221; Market Is &#8220;Way Over-Priced For Reality&#8221; David Stockman is not backing away from his ultimate bearish position, warning viewers of CNBC that &#8220;there are some huge surprises lurking out there&#8221; because &#8220;we&#8217;ve had eight years of monetary expansion that is just off the charts of history.&#8221; He is certainly not wrong [&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":[964,2120,1138,4318],"class_list":["post-34846","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cnbc","tag-david-stockman","tag-stock-market","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34846","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=34846"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34846\/revisions"}],"predecessor-version":[{"id":34847,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/34846\/revisions\/34847"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=34846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=34846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=34846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}