A tech slump following Facebook stock plunging, along with rate hike is concerning to some.
The Trends Research Institute and Trends Journal's publisher Gerald Celente said stock buybacks are driving the market up and the recent drop in the market has very little to do with Facebook. Instead, it’s that the markets are overvalued and over leveraged.
“Equity market volatility that began in early February, we forecast will continue for several months,” said Celente.
Celente forecasts the Trump rally is over.
“Well, the bull market as we know it is definitely coming to an end. But, it doesn’t mean there’s going to be a crash or severe correction,” said Celente.
He said there's a lot of wildcards out there and you need to look beyond just the economics. If markets are going to go into mayhem...just watch the price of gold, housing starts, new mortgage applications, multi-family housing sales and auto sales.