David Stockman’s infamous “Sell Everything” call back in early November was another classic 2016 scrapbook entry in my collection of dogshit analysis from experts and pundits this year. However, he came out to defend his call citing “Sucker’s Rally” and urges listeners to sell everything yet again.
“This 5 percent eruption is meaningless. It’s some robo machine trying to tag new highs,” Stockman said Tuesday on CNBC’s “Fast Money,” in a dismissal of the S&P 500 rally.
“I see a recession coming down the pike in 2017. The stock market is going to go down and it’s going to stay down long and hard because, for the first time in 25 years, there’s nothing to bail it out.”
This echoed the initial call Stockman made Nov. 3, when he urged investors to sell stocks and bonds before the presidential election.
However, since the Nov. 8 election, the Dow Jones industrial average has gained 4 percent en route to surpassing 19,000. Additionally, the S&P 500 and Nasdaq also hit record highs in the same time period, gaining 3 percent and 4 percent, respectively.
Yet Stockman, who was director of the Office of Management and Budget under President Ronald Reagan, reaffirmed that markets are heading for disaster.
“My call stands. Sell the stocks, sell the bonds, get out of the casino,” Stockman explained to CNBC in an off-camera interview. “Bonds have already cratered by nearly $2 trillion worldwide and have miles to go. This isn’t a rotation into stocks, either. It’s the greatest sucker’s rally ever.”
I bought $TEAM calls and going after $GOOGL at $770.
In closing, I’m mostly thankful to those of you who still drop in to read my nonsense and contribute to the cause. Enjoy the time with family and I’ll see you on Monday. Happy Thanksgiving.