We have our first date setter... Hedge Fund CIO Sets The Day When The Next Crash Begins |

in money •  2 years ago  (edited)

"It’ll Be An Avalanche."

Those were the words of One River Asset Management's CIO Eric Peters. As far as we know, he became the first date setter of when the next market crash will occur. He agrees with many of us that the crash will be driven by a collapse in the global credit. His prediction: Valentine's Day 2018

As reported by Zero Hedge Eric Peters says it will happen over the next 8 months, a period which will begin with an increasingly tighter Fed and conclude with a market avalanche:

“The Fed hikes rates to lean against inflation,”
“And they’ll reduce the balance sheet to dampen growing financial instability,”
“They’ll signal less about rates and focus on balance sheet reduction in Sep.”

“If they break the economy with rate hikes, everyone will blame the Fed.”

“But no one understands the balance sheet, so if something breaks because they reduce it, they’ll get a free pass.”
“The Fed has convinced itself that forward guidance was far more powerful than QE,”

“This allows them to argue that reversing QE without reversing forward guidance should be uneventful.”

“Balance sheet reduction will start slowly. And proceed for a few months without a noticeable impact,”
“The Fed will feel validated.”

“But when the global credit impulse reverses, it’ll be a cascade, an avalanche. And I pin the tail on that donkey to be Valentine’s Day 2018.”

Original source


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