Tom Fitzpatrick: Stocks to Go Down 27%, Bonds to Go Up to Extreme Levels, Gold to Remain Firm (+2K Views)

“We think that, short-term, the S&P 500 and the DJIA will head down to their 200 day moving averages in a similar fashion to what we saw last year which would be 1277 and 12,000 respectively [Go here to see his chart].

Comparing the market environment with that of ’73 to ’77….when we had a similar deterioration in housing, in the economy as well as in the U.S. dollar, gold and the oil price shocks, and sensing that we may have already put in the peak here, the suggestion is that the next down-move would be in the region of 27%. This could be a very quick move, in as little as four or five months.” [Go here to see his chart.]

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