Caetano Barreira/Reuters
- Stocks could tumble by 10% or more in late summer once the coronavirus pandemic’s true fallout becomes clear, Peter Boockvar of Bleakley Advisory Group told CNBC on Wednesday.
- The market has brushed off bad economic data as a blip caused by the shutdown, but that could change in August or September when the number of businesses and jobs lost is revealed, the head of the $4.5 billion wealth manager said.
- “That’s when the gut check will take place,” Boockvar said. “The market’s ignoring all the bad news on the hopes that things obviously get better as we reopen.”
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Stocks have shrugged off slowing US growth and surging unemployment to post fresh highs in recent weeks. They could slump 10% or more in late summer when the pandemic’s lasting damage is revealed, the boss of a $4.5 billion wealth manager warned in a CNBC interview on Wednesday.
The “extraordinarily expensive” stock market has “thrown out all the bad data because it was self-imposed,” Peter Boockvar of Bleakley Advisory Group said.
“When you shut down, you cause yourself your own pain.”
It won’t be clear how many businesses can reopen, how many employees will get their jobs back, and how much households and businesses are spending until August or September, Boockvar continued.
“That’s when the gut check will take place,” he told CNBC. “The market is ignoring all the bad news on the hopes that things obviously get better as we reopen.”
Mark Cuban, the “Shark Tank” star and billionaire owner of the Dallas Mavericks, also underscored the uncertainty around future job numbers and demand in a recent Real Vision interview.
“Once we start to really have definitive data on the other side, people are going to sell on the news, and if I had to make a bet, that’s it,” he said.
