Another recession within the next year or two is possible — and it could drive down the S&P 500 by 30 percent to 850 points, according to Barry Ritholtz during a discussion Tuesday on Bloomberg TV. “We’re in a secular bear market that began in 2000 and will run until whenever it ends … sometime between Thursday and 2017,” said the FusionIQ CEO and columnist for The Washington Post.
Ritholtz knows something about financial crises. He literally wrote the book (pun intended) on the causes of the 2008 financial crisis, Bailout Nation: How Greed and Easy Money Corrupted Wall Street and Shook the World Economy.
Among his book’s recommendations, Ritholtz advocates regulating derivatives like any other financial instruments; reforming ratings agencies; and restoring the Glass-Steagall Act. You’ll have a chance to ask him about all of that and more next week in midtown Manhattan at Sybase’s exclusive luncheon “Market Cycles, Economic History and Where We Are Today.”
Ritholtz will outline the current economic cycle as it relates to the last 50 years, and share his vision of the near future. He will also examine possible threats surrounding regulation and the economy.
“Banking has devolved into an unruly mess,” Ritholtz wrote in The Washington Post last week. “Safety and security are secondary to risk-taking and speculation.”
And for what it’s worth, I hope the secular bear market ends on Thursday.