CNBC/Elliot Smith/5-16-2022
“Investors looking for value in the stock market during the ongoing downturn may be ‘deluding themselves,’ according to Sean Corrigan, director at Cantillon Consulting.”
USAGOLD note: More and more, analysts are pointing to something we have considered the real problem all along – LEVERAGE. The Fed will find it everywhere in financial markets, if it cares to look, and it will not be long, in our view, until confronting it will be unavoidable. “People always say the market comes down on profit-taking,” says Corrigan. “it comes down on loss realization. The guy who sells at the top sells to the next two guys, who realize it’s not going to hold, who sell to the next guys and if any of those are leveraged, we’re in trouble.”
