David Hefty is Back, Warning That If A Few Hedge Funds Get Margin Calls, The Dow Is Headed To 5,000

David Hefty may be the hottest uber-bear on the planet right now.

The CEO of Cornerstone Wealth Management obviously scored off-the-dials ratings when he appeared on CNBC last week, so they invited him back to explain why the Dow is headed to 5,000.

His reasoning?

There’s $17 trillion worth of leverage in the financial system, and if just a few hedge funds get margin calls, the whole thing will come tumbling down.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.