US stocks could tumble 15% in a rough fall - and the bitcoin bubble could deflate further this year, Guggenheim's Scott Minerd says
- US stock prices and bond yields could decline further this fall,
Scott Minerdtold Bloomberg.
- Fears that the delta variant will cause the economy to weaken could see US
stocksfall 15%, he said.
- Minerd said "there's still more air to come out" of the
US equities could drop 15% by the end of October, driven lower by concern over the delta variant of COVID-19 and its impact on global growth, while
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That said, the benchmark US stock indices have all hit record highs this month and are not trading far below those levels. The S&P 500 hit a record 4,393.68 on July 14 and closed about 1% below that level on Tuesday.Wall Street can expect a rise in volatility over the next few months, as the Federal Reserve could taper its asset purchases sooner than expected if pressure grows for the central bank to start to normalize interest rates, according to Minerd. He expects Treasury yields to decline by as much as 60 basis points if
For cryptocurrencies, July was the third consecutive month of negative returns. Minerd expects them to stay challenged in the near-term.Minerd reiterated a $15,000 price prediction for bitcoin, a 53% decline from Thursday's price of $32,190, and said "a lot of this stuff is just junk." Still, he called ether a more viable currency than bitcoin. "I think there's still more air to come out," he said. "The standard bear market for bitcoin has been an 80% retracement, and given all the uncertainty and the new competition from new coins, I think there's more downside to go."
Buying bitcoin anytime soon isn't a good idea, according to him. He has previously compared cryptocurrencies to the 17th century tulip bubble. After pulling back significantly, Minerd has said he expects bitcoin to eventually rise to as much as $600,000 per coin.
Read More: The head economist at a blockchain fintech firm names 2 of the most promising crypto SPAC deals on his radar - and explains why blank-check companies can be better alternatives to buying cryptocurrencies
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