'Manias die in vicious ways': A pair of fund managers who have beaten 99% of their peers over the last 5 years warn the S&P 500 will shed at least 30% of its value when the current bubble pops

Bill and Cole Smead, founders of Smead Capital Management, predict that the S&P 500 will lose at least 30% of its value in the coming years, comparing the current market to the dot-com bubble in 2000, citing extreme concentration in tech stocks and high levels of household equity ownership.

businessinsider.com

Relevant topic timeline:

8/22/2023

Here's why stocks have tanked in August and what Wall Street expects to happen next

The S&P 500 has fallen nearly 5% in August, and opinions on whether stocks will rebound are divided among Wall Street firms and market commentators, with some, like Goldman Sachs and Fundstrat, remaining optimistic while others, including Michael Burry and David Rosenberg, are bearish.

8/30/2023

Why the S&P 500 could rally another 11% by year-end, according to a Morgan Stanley senior portfolio manager

The S&P 500 index has seen impressive gains this year, up over 17%, and could potentially reach 5,000 points by the end of 2023, according to expert Andrew Slimmon of Morgan Stanley. Despite a slight pullback in August, strong third-quarter earnings and investor interest in mega-cap tech stocks are expected to drive the market forward.

8/31/2023

Morgan Stanley analyst predicts S&P 500 could leap another 11% this year

Despite economic challenges, the S&P 500 is expected to continue its strong growth, potentially increasing by as much as 11% as the summer season ends, driven by companies like Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta, according to Morgan Stanley analyst Andrew Slimmon.

9/4/2023

Berkshire Hathaway stock could crash 99% and Warren Buffett would still have trounced the S&P 500

Warren Buffett's Berkshire Hathaway has outperformed the S&P 500 even if its stock price crashed by 99%, with a gain of nearly 3,800,000% between 1965 and 2022 and stock currently at record highs.

9/9/2023

Hussman Predicts Over a Decade of Poor Returns for S&P 500 Due to High Valuations, Sees Substantial Crash Ahead

John Hussman warns that stocks are overvalued and investors buying into the S&P 500 now are likely to experience abysmal returns for the next decade. He cites high valuations and poor investor sentiment as indications of a forthcoming steep sell-off, and predicts an annualized return of -4% over the next 12 years.

9/17/2023

BofA: S&P 500 Could See 25% Surge in 2023 Based on Profit Growth Expectations

Bank of America predicts that the S&P 500 could surge over 25% within the next year based on a bullish indicator, with low long-term profit growth expectations among analysts signaling potential gains.

9/19/2023

Stocks Fall Broadly As Consumer Discretionary Leads Market Decline

Almost all S&P 500 sectors experienced losses in the stock market, with consumer discretionary stocks leading the declines, while financials were the only sector in the green.

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Posted 8/26/2023, 9:00:00 AM