SAN FRANCISCO, CA--(Marketwired - September 17, 2015) - Joe McAlinden, founder of McAlinden Research Partners and former chief global strategist with Morgan Stanley Investment Management, comments on current market volatility and the impact that could have on gold and oil prices. In this interview with The Gold Report, McAlinden also shares his insights on the role of the Fed in a free market.
The Gold Report: For more than a decade, you led Morgan Stanley Investment Management's global investment strategy; now you own your own research firm based on your observations of the industry for more than 50 years. How do you explain the volatility in the markets right now?
Joe McAlinden: It has been a wonderful bull market, a wild ride going all the way back to 2007 when the market made its top. That was followed by a horrendous plunge. We've not only made that back, but the market has reached highs that were 36% above the 2007 highs. Price-earnings ratios have become elevated and we are seeing other spooky similarities to the conditions that prevailed prior to the 1987 crash, including the absence of a more than 10% correction for three years and a breakdown of small-cap stocks. The market could be vulnerable to some kind of major shock.
TGR: What do you think the market expects the Federal Reserve Board to do?
JM: The market is hoping the Fed will bail them out by postponing the tightening…
Continue reading this interview: Veteran Investment Strategist Joe McAlinden Reverses View, Predicts Recovery for Gold, Oil and Housing
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DISCLOSURE:
McAlinden Research Partners is a banner sponsor of Streetwise Reports. Joe McAlinden had final approval of the content of the interview and is wholly responsible for the validity of the statements. Opinions expressed are the opinions of Mr. McAlinden and not of The Gold Report or its officers.
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Judy Luther