Heard him the other day discuss the current financial environment. He thinks the S&P will hit 400 before the end of the crisis. According to his research, rising treasury yields does not affect the stock market until it hits 6%. He expects the treasury yields (currently at around 3%) to easily reach 6%, even though the Fed is trying to do all in its power to avoid that by purchasing bonds.
I am very much hoping Mr. Napier is wrong. Cause I can’t help but feel that the world economy has to completely crash for the markets to go that low, and I am starting to become hopeful that things might start looking up after recent economic data.
Do not think S P will ever go that low. Theyd stop reporting SP before letting that happen.