How Much Lower Will Markets Go? Top Investors See No Bottom Yet

[Purveyor]

January 20, 2016 — 3:39 PM EST

Investment managers are warning that markets probably have further to fall as China’s growth slows, oil prices plunge and central bankers lack tools to prop up economies.
The Standard & Poor’s 500 Index will drop another 10 percent to 1,650 and oil could fall as low as $20 a barrel as investors flee for safety, according to Scott Minerd, chief investment officer of Guggenheim Partners. Jeffrey Rottinghaus, whose T. Rowe Price mutual fund beat 99 percent of rivals over the past year, said stock prices could fall another 10 percent as the U.S. economy slips into a mild recession.

"I expect a protracted decline in the S&P 500," Jeffrey Gundlach, co-founder of DoubleLine Capital, said in an e-mailed response to questions. "Investors should sell the bounce-back rally which could come at any time."

The S&P 500 fell as much as 3.7 percent Wednesday, the most since August, before recovering in the afternoon. The index was down 0.3 percent to 1875.70 at 3:30 p.m. in New York. All 30 members of the Dow Jones Industrial Average were below prices at the beginning of the year, with the index down almost 9 percent since Dec. 31. Oil fell 1.6 percent to $28.31, down 24 percent year-to-date.

Rottinghaus, manager of the $203 million T. Rowe Price U.S. Large-Cap Core Fund, said "industrials and commodities have been in a recession for at least six months" in the U.S.

“What we are trying to figure out is how much that bleeds into the consumer side of the economy," he said in an interview.

more...

http://www.bloomberg.com/news/articles/2016-01-20/how-much-lower-will-markets-go-top-investors-see-no-bottom-yet

[Warpy]

1. Yeah, they know what I know

and that is that the government's giveaway to banks and 1%ers had nowhere else to go, so it hyperinflated the stock market.

In China, the exact same thing happened with their billionaire money. The only difference is that the Chinese knew this going in and failed to panic when their own bubble popped. To investors here, it's been a total surprise because our media, especially the economics reporting, suck.

[KoKo]

4. Yes...we need to keep watching..but, we know something is very wrong...

Didn't get cleaned up and out in 2008...and now it's Game On again.

[Downwinder]

2. What was the last bottom? Should break that.

[Fuddnik]

3. We know it can't go below zero.