The stock market is showing signs of a potential steep correction, according to Michael Gayed, a bearish fund manager on Wall Street. In a recent op-ed, Gayed pointed to three warning signs in the market that are causing concern for investors.
Gayed highlighted the rising prices of gold, utility stocks, and long-term Treasury bonds as indicators of a possible market shift. These traditionally defensive assets moving in harmony could be a precursor to a broader market correction, according to Gayed.
The portfolio manager has been warning of a massive bubble in stocks for months, echoing the sentiments of other bearish analysts on Wall Street. With the dominance of mega-cap tech stocks in the S&P 500, some experts are drawing parallels to the dot-com and 2008 market crashes.
Despite these warnings, investors seem to be largely optimistic about the market, with over 50% feeling bullish on stocks in the next six months. However, Gayed cautions that the market is in a “perfect setup” for a potential stock crash, and investors should be prepared for a possible downturn.
As the debate over the market’s direction continues, it remains to be seen whether Gayed’s warnings will come to fruition or if investors’ optimism will prevail.
