Bill Fleckenstein: S&P Could Fall 25 to 30 Percent

Bill Fleckenstein says that when stocks do finally decline, they could drop by 30 percent. With CNBC’s Jackie DeAngelis and the Futures Now Traders.

“The [price-to-earnings ratio] is 16, 17 times earnings,” Fleckenstein said on Tuesday’s episode of “Futures Now.” “Why would you pay 16 times for an S&P company? I don’t care about where rates are, because rates are artificially suppressed. Why isn’t that worth 11 or 12 times? Just by that analysis, you’d be down by a quarter or 30 percent. So there’s a huge amount of downside.”

The Fed “printing money does not make the economy work, but it sometimes makes stocks go wild,” Fleckenstein said. “The reason the stock market did well last year is because the Fed printed $1 trillion.”

And as long as the Fed continues its quantitative easing program, and investors continue to have faith in the Fed, “it’s not an environment in which you can put together a logical argument to be short and stay short,” he said.

“If they taper, they’re going to get a lot of weakness. People are being very macho right now, they think that if the Fed tapers it’s going to be OK—and it might be for a little while. But the market’s going to end up lower if they keep tapering, and they’re going to have to come back the other way. Then at some point, people will see that the Fed is trapped, because what they do doesn’t work, and they can’t stop,” Fleckenstein said.

Source

Precious Metals as a Safe Haven

There’s a great wealth transfer taking place right now. Are you on the losing end or the receiving end?

Wealth Transfer Planning

Precious metals have always been a safe haven for investing in high inflationary times. Historically speaking, a recurring cycle that always seems to repeat itself is periods of high inflation as a precursor to the crash of paper currencies. Those who understand this wealth cycle and position themselves in gold and silver are those who prosper.

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The Great Wealth Transfer

Watch Terry Sacka: The Wealth Transfer show on the Christian Television Network discussing the financial and influential decline of the Western world and the simultaneous wealth increase of the East. With the wealth of nations shifting, it’s imperative to understand moving forward how hard tangible assets will allow you to maintain a quality lifestyle.

Visit the Wealth Transfer archive for more episodes.

Learn more about how buying gold and silver today is a smart move for your investment portfolio.

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» Read our article: Why Silver is Going Up Today?

» Read our article: Why Gold is Going Up Today?

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