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Peter Davis

An writer at FOMOdrive

  • Oct 15, 2023
  • 3 min read

Roubini warned of a market collapse due to the war in the Middle East

Dr. Roubini foresaw an increase in oil prices and an economic slowdown caused by the conflict in Israel.

Jones, a billionaire, cautioned of the potential dangers associated with investing in stocks due to the ongoing conflict in Israel and the high levels of debt held by the United States government.

The Bank of England declared that US technology stocks are excessively priced.

JPMorgan cautioned that the S&P 500 could potentially experience a 20% drop.

Wall Street's "eternal bear" has predicted that the S&P 500 could drop by as much as 50%.

RBC reports that renowned economist Nouriel Roubini, who accurately predicted the 2008 financial crisis, has warned that financial markets are not taking into account the potential risk of a major military conflict in the Middle East.

If Iran or Lebanon were to intervene in the conflict, a negative outcome could be possible. This could result in war between Israel and Iran, which would lead to a disruption of oil supplies from the Persian Gulf. This, in turn, would cause a sharp increase in oil prices, resulting in a stagflationary shock that would have a devastating effect on the global economy.

Paul Tudor Jones, a billionaire, declared that investing in risk assets and stocks is exceptionally challenging in the current climate of intensifying geopolitical conflicts and dire economic circumstances in the United States.

Jones warned that the conflict between Israel and Hamas has created the most dangerous and difficult geopolitical situation to date, which could cause investors to withdraw from high-risk investments. He did not exclude the possibility of a nuclear war.

The Bank of England cautioned that US technology stocks, among other high-risk assets, are overvalued in light of the current macroeconomic environment and the sudden increase in interest rates. They warned that if the economy slows, there could be a significant drop in asset prices.

JPMorgan has warned that the S&P 500 index could drop by as much as 20% if a recession were to occur, given the current high interest rates. This year's gains in the S&P 500 have largely been driven by a surge in seven technology stocks.

Jeremy Grantham, a British investor who had previously predicted the crashes of 2000 and 2008, has warned that now is not the time to invest in the US stock market. He believes that the biggest bubble in history is about to burst, and that the S&P 500 could drop by as much as 50%.

Fundstrat believes that the US stock market has reached its lowest point and may be on the verge of a recovery. Investors may be presented with a great opportunity to purchase stocks that have dropped in value. It is possible that the decline in the American stock market is coming to an end.

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