As 401(k) Values Roar, Market Mavens See Worries


Your 401(k) retirement plan is probably quite healthy, comparatively, thanks to record levels on Wall Street. But that healthy and growing bottom line stays that way because of a roaring bull market – which means it’s also tied closely to the declines of a bear market and corrections.

Three people whose predictions and against-the-grain market gains outfoxed 2008 financial crisis are telling a major newspaper that they have growing concerns here in 2017 in era of the still-growing “Trump Bubble” that continues to send stocks to record levels.

USA Today revisited three key past trend-spotters and asked them their thoughts about  the current white-hot market … and some warned of overheating.

Here are excerpts:

--Yale economist Robert Shiller, author of “Irrational Exuberance,” previously warned – correctly -- of an Internet stock bust. He also said that aa “catastrophic collapse of the housing and stock markets could be on its way.” Today he says: “Risks have never been larger.”

--Euro Pacific Capital head Peter Schiff wrote “Crash Proof: How to Profit from the Coming Economic Collapse” in 2007, just before an economic near-disaster that led to the Great Recession. In 2006, he warned that the U.S. stock market was “the Titanic.” Now, he tells the newspaper:  “I am worried about a (market) correction. But my gut is it will keep going up for a while.”

--Artemis Capital lead investor Christopher Cole says his success in running a hedge fund is rooted in daredevil gains he made in the 2008 crisis. Right now, he says there’s “an illusion of stability.

The newspaper reports that all three “see a market distorted by low interest rates, one being driven higher by forces that could keep the rally going longer than many believe. They say that market will end badly once its key underpinnings — low rates, tame inflation and historically low volatility — head quickly in the other direction.”

The full story can be found at https://www.usatoday.com/story/money/2017/11/12/401-k-risk-what-3-stock-market-skeptics-see-ahead/847751001/ 


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