Short The Dow For 2019’s Coming Recession Says Top Hedge Fund

(March 20, 2019 - Ben Brown)

The Dow Jones is set for an epic collapse, plunging the US into a recession as early as this year, according to Crescat Capital.

The hedge fund, which consistently outperforms the market, is loading up on short positions on global stocks and shifting assets into gold in anticipation of a stock market meltdown.

Crescat believes 2019’s Dow Jones recovery is a “bear market rally” that will soon collapse. Source: Yahoo Finance

It comes less than a day after Nobel Prize winner Robert Shiller said a recession is likely in the next 18 months. The bears are circling, and the stock market is on thin ice. As CCN recently reported, US stocks are highly over-priced and due for a monster correction. The Dow is in a bubble. The only question is when will it burst?

THE DOW IS DUE FOR COLLAPSE

Speaking to Bloomberg, Crescat points to a number of factors for its bearish position. Chief of which is the sheer volume of corporate insiders offloading their stock.

Executives are now selling their own company stock at a rate of 5:1 compared to buyers. That’s the highest level in two years with 2,600 executives selling shares in February. Insider selling often indicates a rally is running out of steam.

The hedge fund also points to poor economic data and the high inversion on the Treasury yield curve. Not to mention the China-US trade war which may end with a disappointing outcome for traders.