Wall Street Wonder Warns of Growth-Pocalypse, Looming Recession
Morgan Creek Capital Management CEO Mark Yusko predicts stocks will finish the year lower by double-digits and an economic recession is around the corner. | Source: Shutterstock
By CCN: Stocks in some sectors are teetering on the brink of a bear market, and one Wall Street veteran believes it’s going to get worse. Mark Yusko, who is at the helm of Morgan Creek Capital Management, says that the bears are already out and stocks are going to finish the year lower by a double-digit percentage, according to his interview on CNBC. Before you write him off, consider that in 2018, he predicted that stocks would end the year on a sour note – and he was right. If he’s on target once again, the economy is headed for a light recession akin to the one that unfolded at the turn of the century.
— CNBC’s Fast Money (@CNBCFastMoney) May 22, 2019
Even though he isn’t calling for a recession that is of the magnitude of 2008, Yusko is pointing to another “credit crisis” in 2020. He wouldn’t be surprised to see stock market declines of between 12%-14% by year-end 2018. Considering that the broader stock market remains up by a double-digit percentage, this would be a precipitous drop in value for investors’ portfolios. Yusko is bracing for what he calls a “Growth-Pocalypse,” which he admits is hyperbolic, adding:
“When I say Growth-Pocalypse, I mean one handle for the second quarter, maybe lower for the third quarter,