In new comments to the press, Libertarian firebrand and previous U.S. Representative Ron Paul warned it’s “very possible” the U.S. stock market could correct as much as 50 percent in the near future. It’s a reminder for crypto traders to keep the corner of their eyes on the stock market, insofar as investors flee from high-risk to low-risk assets during economic crashes.
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Paul: ‘Too Much Printing of Money’
Ron Paul’s no stranger to going to where no one else wants to go, i.e. looking America’s grimmer economic quagmires square in the eye. He’s reinforced that reputation once more by saying what no one wants to hear: the stock market could be in store for a 50 percent crash in the not-so-distant future.
As Paul noted in new comments to CNBC:
“The fundamentals show that the spenders are in Washington. They’re alive and well. The deficit is skyrocketing like never before. The market is destined to go down […] The fundamental reason is that we’ve had too much printing of money — especially since 1971, especially with the QE. So, everything is artificial. There are big bubbles, so stocks are basically higher [than they should be].”
Indeed, the former U.S. Representative went on to stress he had a “glass-half-empty” outlook on stocks:
“Ultimately, when these corrections have to occur, they always go down a lot more than people expect. Just like they go up higher than people expect,” Paul said. “A 50 percent correction with all the distortion that has existed for all these years — I think it’s very possible […] In spite of what looks pretty secure in the economy in the statistics, I think it’s in shambles. It’s a real mess.”
If So, Expect a High-Risk to Low-Risk Flight
That means crypto markets would seem to be poised to bleed alongside the stock market if a major correction really is imminent as Paul suggests — ’tis all speculation for now, of course.
It’s not a sexy possibility to highlight, but, in the very least, the takeaway here should be that there’s always room for a healthy dose of caution for crypto traders.
Everyone looks like a genius in a bull market. Stay humble.
— Chris Burniske (@cburniske) November 25, 2017
Paul Mentions Gold … What About Digital Gold?
Lastly, in light of his ongoing economic concerns, Paul said “I personally would be better off if I did buy a little bit more gold.”
It’s an admission that will have the many Austrian Economists in the cryptoverse tingling, barely able to contain their plea for Mr. Paul to try more digital gold, too.
The American Libertarian thought leader has previously posited that bitcoin may “destroy the dollar.”
What’s your take? Do you think a stock market crash is realistic or not in the coming months or years? Sound off in the comments below.
Images via CNN, Ozy