A number of Wall Street veterans like Bear Traps Report author, Larry McDonald, think that markets might see some “disastrous and unimaginable” impacts in the near future. Another seasoned analyst, Larry Williams, believes the S&P 500 will shudder after July 28. Despite the pending doom edging toward traditional stock and equities markets, bullish crypto researchers believe the digital currency bitcoin will see the opposite trend going forward.
Wall Street Vets Predict Disastrous Market Outlook
It’s safe to say that a lot of people are concerned about the global economy and the financial systems leveraged in the country they reside in. This is due to the fact that governments worldwide responded to the Covid-19 outbreak by shutting down a large portion of the economy.
Despite the economic downturn, central banks like the U.S. Federal Reserve has been on a money creation spree. This has bolstered traditional stock and equities markets, but veteran economists think that this current run can only last so long.
At press time, the three top U.S. composite indexes; Nasdaq, Dow Jones, and NYSE, are all down on Friday, alongside big tech stocks too like Apple. People think that stock markets are still not reflective of reality just yet, and a number of analysts believe a hard economic recession is looming in the backdrop. Wall Street veteran Larry McDonald recently explained that government intervention exacerbates the economy and he called monetary interventions a “cobra effect.”
“Basic economic assumptions, or structures, will turn out to be much more fluid than policymakers can anticipate. Therefore the results will be disastrous and unimaginable,” McDonald stressed.
The “cobra effect” McDonald is talking about refers to a time in India when there were too
