Fleckenstein: Stock Market Is A Farce, We’re At The End Game!
- Fleckenstein – Stock Market Is A Farce, We’re At The End Game!
After the initial euphoria following the Spanish bailout, European and US stock markets have surrendered early gains. Today King World News interviewed Bill Fleckenstein, President of Fleckenstein Capital, to get his take on where we’re headed. When KWN last spoke with Fleckenstein, he predicted that stocks would tank, and the Dow tumbled over 900 points in less than 30 days. When asked about that call and what investors should expect going forward, Fleckenstein responded, “I happened to catch that moment in time correctly. The stock market is kind of a farce, which is not to say that stocks are uniformly expensive because lots of them aren’t. On the other hand, any bid over one cent for any financial institution presupposes that you know something about what’s in the entity, and in almost all cases you can’t.”
“This is not to say that all financial companies are worth nothing, but lots of them basically are (worth nothing). So I think there’s a lot of fluff in the S&P. But the fact that the market is not hugely expensive is why it seems somewhat impervious to some of this bad news. Plus, when you have these algorithmic trading programs on the loose, trying to ferret out what the market might be telling you is next to impossible. Last night, after the Spanish deal was announced, they had the S&P (futures) up what, 1.5%, on this complete air-ball of an idea….