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Market Headed for Major Sell Off?

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  • Description

    Shaffer Asset Management CEO Dan Shaffer explains why stocks will head downward for several years.

  • Duration 3:47
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This transcript is automatically generated

But our next guest says that the markets are headed for a major sell off the could last for several years.

And -- the Fed out of bullets to stop at Dan Schaefer Schaefer asset management joint -- out Dan.

Markets -- up triple digits today and here you're here to play the role of doctor buzz kill -- -- stocks going down for several years well we have.

Is it deflationary depression that we are in the early stages up.

With a world economies were so full of debt not just the individuals -- governments all around the world and they cannot control the debt anymore and therefore they're gonna cut their spending.

When governments cut spending it -- less buying power to the markets or to the -- world economies.

And this is not AME Dennis just think about it interest rates are the lowest day in our lifetime but even going back hundreds of years they're lower than they were during the Great Depression.

Right now.

Why is that it's because we're going to this deflationary environment which will last many years that the housing -- is too high people over spent themselves the next.

Bubble that I'm hearing about now is the student loan debt which is higher than consumer debt this is a very big problem it doesn't clear itself out over night.

And it took fifteen years to build plus.

One day were all visually get a dot but if I might -- suggest that in march of 09 when the Dow was at 6800.

Many very scared experts came on -- and said stocks are headed at 3000 are only 4000.

And instead stocks roared up eighty or 90% investors missed out on that perhaps why -- you right this time how locally on how you want a tell you it.

QE1.

QE2.

Harp Operation Twist.

None of it's working.

Why -- -- -- working because the world has shifted socially to cut back spending.

So that governments and the Federal Reserve could coordinate whatever they want.

And try to pump as much money as they -- -- the system which eventually does find its way into the stock market that's why the market did rally if you really look at the volume was low.

And a lot of individual investors weren't there.

This is now coming to a tipping point where people are going to realize now that the economic numbers coming out.

Are showing slow down manufacturing.

Housing starts housing sales all of this environment and unemployment which was just re adjusted for over three months they went back -- -- just yet.

It's not working.

-- -- advances Republican did you write about everything you're saying and yet if it turns out that in a world of sagging investments boils down gold is down everything's down.

US stocks of multinationals are among most undervalued assets out that their earnings are double and triple where they work ten years ago and stocks are where they -- ten years ago and you know and I hear that our.

-- all the time and give you -- counter to the argument.

I hear people pundits getting on TV saying why would anybody buy a ten year treasury at one point nine when it was there are 2% when inflation is too -- what.

2.2.

The issue -- is -- buying a fixed investment at one point nine.

And it's against the variable of inflation we're gonna go to deflation so when those numbers go negative those US treasury bonds -- gonna look very valid and very good as berries and invest.

Okay let's talk -- -- -- obnoxious did you like you but Woodward who do you like you UPE like the US dollar.

And you wanna short gold and short oil aren't you put all your eggs and a single basket aren't all those -- free trade the same thing basically well not necessarily but the -- ahead in the same direction in a deflationary environment these are the kind of things that are gonna fall down.

And you wanna be here in the dollar there's a shortage of dollars all -- the world whose debt is defaulting all over the world in US dollars.

Aren't we got to wrap here you know in January you are gonna go to dinner taps and it -- -- the SP 500 higher then than it is today yes you buy dinner capsule -- have a board that look forward to things -- whether it's okay.

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