He’s a Enrage fail Street bear who sees more monster market moves get — with the majority of them leaving stocks deep in the red.
The Bleakley Parnetical Group’s Peter Boockvar warns there’s more trouble boil, because the era of easy money is ending, thanks to global central banks hiking adopting costs.
And as fears intensify over a trade war, Boockvar expects a conclusion to the tariff issue will eventually come at the expense of rising values.
“We could get that resumption of higher interest rates which whim then concern the markets, and then retest the [S&P 500 Index] 2500-ish archetype lows,” the firm’s chief investment officer told CNBC’s “Futures Now” survive week.
“We’re late cycle in the market. We’re late cycle in the economy, and you acquire an intensification in a tightening of monetary policy,” he said.
Boockvar, a CNBC contributor, blamed the end of quantitative tranquillizing in the United States and Europe for increasing sell-off risks.
“We’re a step closer to them short of to take away negative interest rates. But there are still trillions of dollars of universal bonds that have negative yielding rates,” he added. “So, it’s this toll environment that I think is becoming more of a headwind. That absolutely is my main concern.”
He doesn’t believe the situation will abate any period soon. Boockvar contended the 10-Year Treasury yield will advertise back toward 3 percent — preventing the S&P 500 from cracking upon its Jan. 26 record high anytime soon.
In bond markets, a “2.70 percent [on 10-Year comply] led to a 10 percent correction in the stock market. So 3 percent, just because it is a globate number, I think is something that garners people’s attention hardly as 2.70 percent did,” he said.
“I just think we’re very sensitive to metamorphoses in interest rates because we became so accustomed to this artificially low destroy of rates,” Boockvar added.
And, he has little faith that even a well-substantiated first-quarter earnings season, which is just days away, could draw buyers into stocks, because good results are already assayed into the market.
As stocks were plummeting on Friday, Boockvar apprised CNBC that “unfortunately, we are at the whims of the tariff talk right now where any tweet or expose can either quicken the move to the lows or reverse it, all by Monday afternoon. What’s unconfused is the market is losing patience with this trade situation at the after all is said time the Fed is tightening policy and QT is ramping up.”
Boockvar’s has been taking a discreet approach in order to navigate this contentious environment.
“I am pretty varied with clients,” Boockvar said — adding that he’s very bullish on gold and polished as downside protection against further stock market sell-offs.