floridafan
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)Alan Greenspan says the party's over on Wall Street.
The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.
"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.
He added that markets could still go up further — but warned investors that the correction would be painful: "At the end of that run, run for cover."
This is why presidents shouldn't mess with the Fed
This is why presidents shouldn't mess with the Fed
Markets have staggered in recent weeks, with spooked investors selling over mixed messages coming from the White House concerning the status of trade negotiations with China and growing fears of a global economic slowdown.
The jitters come as the Federal Reserve's interest-rate setting committee prepares to meet Tuesday and Wednesday. They're expected to raise rates for the fourth time this year — though investors will also be combing for clues on their plans for 2019. Minutes from the Fed's last meeting in November signaled policymakers want to take a more flexible approach next year adding to investor anxiety.
On Monday, the S&P 500 closed the trading day at its lowest level since October 2017, while the Dow Jones Industrial Average plummeted more than 600 points at one point in the day.
"The volatility is a function of how we speak, think and feel — and it's variable," he said. "Unless you can somehow radically change human nature and how we respond, this is what you'll always get and have been getting. You have to count on it, if you're going to understand how the market functions."
https://www.cnn.com/2018/12/18/business/alan-greenspan-stock-market-party-over/index.html
The former Federal Reserve chairman who famously warned more than two decades ago about "irrational exuberance" in the stock market doesn't see equity prices going any higher than they are now.
"It would be very surprising to see it sort of stabilize here, and then take off," Greenspan said in an interview with CNN anchor Julia Chatterley.
He added that markets could still go up further — but warned investors that the correction would be painful: "At the end of that run, run for cover."
This is why presidents shouldn't mess with the Fed
This is why presidents shouldn't mess with the Fed
Markets have staggered in recent weeks, with spooked investors selling over mixed messages coming from the White House concerning the status of trade negotiations with China and growing fears of a global economic slowdown.
The jitters come as the Federal Reserve's interest-rate setting committee prepares to meet Tuesday and Wednesday. They're expected to raise rates for the fourth time this year — though investors will also be combing for clues on their plans for 2019. Minutes from the Fed's last meeting in November signaled policymakers want to take a more flexible approach next year adding to investor anxiety.
On Monday, the S&P 500 closed the trading day at its lowest level since October 2017, while the Dow Jones Industrial Average plummeted more than 600 points at one point in the day.
"The volatility is a function of how we speak, think and feel — and it's variable," he said. "Unless you can somehow radically change human nature and how we respond, this is what you'll always get and have been getting. You have to count on it, if you're going to understand how the market functions."
https://www.cnn.com/2018/12/18/business/alan-greenspan-stock-market-party-over/index.html