Cazenove Capital Management’s Robin Griffith sounded incredibly bearish on a radio interview with King World News.
He even thinks the September Effect will be validated — because the real negative historical trend lasts from mid-September to mid-October.
The collapse in the next few weeks will be similar to the collapse from April to July, Griffith says, putting his target for the S&P 500 at 940.
If you think that’s low, wait till the Alt-A mortgage rate reset in March. “The dip this year is modest. The dip that occurs next year is the one that risks taking major indices right back to where they were in March ’09,” Griffith says.
The Cazenove strategist has a bearish election prediction too. The market-friendly Republicans will win, but the loss will be so “catastrophic” for the Democrats, it will make Obama an immediate lame duck, hurting the economy.
Oh yeah, and he thinks the plunge protection team was the only thing keeping the rally going in September.