Global Macro's Raoul Pal: Here's Why A Crash Is Coming In Two Days-To-Two Weeks

We don’t mean for it to be doom and gloom day, but Richard Russell isn’t the only big name pundit to be calling for a fall.

Raoul Pal, who writes Global Macro Investor newsletter, and whose bio cites stints at GLD and Goldman Sachs, is out with a very specific crash call. In his latest note he calls for a big move down in just two days to two weeks.

That’s refreshingly specific!

So what’s the reason?

It’s all about what he sees as an archetypal crash pattern — a sharp decline followed by a failed rally followed by a collapse.

It looks like this:

crash

Photo: Global Macro Investors

That’s an unspecific chart, but here’s a more specific one, based on the current post-flash crash market.

crash

Photo: Global Macro Investors

And now, here’s the kicker. It’s the current market vs. 1929, which is what prompts him to see a crash as imminent.

crash

Photo: Global Macro Investors

And finally, here’s the flash crash vs. 1987

crash

Photo: Global Macro Investors

Get the picture?

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