|The financial crisis of 2008 is about to repeat itself. So says Michael Lewitt, editor of The Credit Strategist newsletter who correctly forecast the financial crisis of 2008. He recommends a cautious approach to stocks going into 2015.
“The U.S. stock market is overvalued both in terms of current corporate earnings as well as the economy’s potential future growth,” Lewitt writes in his December issue. “Investors would be wise to hedge their portfolios both to protect their gains and defend against systemic instabilities that are increasing.”
Given the pattern of 50%+ drops in the stock market twice this century, the next drop could be killer: