Michael Novogratz doubts stock rally. 

Michael Novogratz thinks that stocks are in a bear market rally and he believes another pullback is due soon. Investors should not trust this stock bounce argues Michael Novogratz.  

The S&P is trading a significant 30% above its March 23 lows, at the time of writing this piece but Michael Novogratz doubts stock rally and he thinks that what we are seeing is not a bull market but a bear market rally.

Michael Novogratz thinks that stocks are in a bear market rally and he believes another pullback is due soon

THE WEALTH TRAINING COMPANY

Michael Novogratz doubts stock rally but is he right to dismiss the idea that stocks could go higher, despite the Fed’s quantitative easing (QE) to infinity

Global QE Asset Purchases is expected to reach 6 Trillion US dollars in 2020, according to Fitch Ratings.

Fitch Ratings recently said that Central banks’ balance sheets are expanding rapidly as they buy up large quantities of public and private assets and increase their lending to financial institutions in their efforts to counter the damaging economic impact of the coronavirus. 

“Six trillion dollars is a staggering amount that is equal to more than half the cumulative global QE total seen over 2009 to 2018” said Robert Sierra, Director, of Fitch’s Economics Team. 

Six trillion dollars is a staggering amount that is equal to more than half the cumulative global QE total seen over 2009 to 2018

ROBERT SIERRA, director Fitch’s Economic Team

Could the central banks’ still be unable to prevent what could be an inevitable repeat of the Great Depression, which could be why Michael Novogratz doubts stock rally?

Bear market rallies are not uncommon. For example, the 1929 stock market crash followed an impressive 47% bear market rally over four months immediately after the bear bottom. Stocks then peaked around April 1930, then reversed a trajectory and began a protracted tailspin of decline lasting two years until hitting a bottom in June of 1932 during the Great Depression. At the end of the 1929, stock market crash approximately 83% of stock value were wiped off stocks from their peak in April 1930. 

April’s bear market rally was probably the result of trillions of dollars of the Fed’s QE program” – The Wealth Training Company

Michael Novogratz doubts the stock rally view is supported by dire fundamentals, which often causes monetary policymakers to inject unprecedented liquidity into stocks

So April’s bear market rally was probably the result of trillions of dollars of the Fed’s QE program as noted above. In other words, April’s spectacular central banks’ induced 30% rally from the bottom coincided with the Fed’s balance sheet hitting a new record of $6.7 trillion in the last week. 

Michael Novogratz doubts stock rally view is in cahoots with several heavyweight investors

From Jeff Gundlach, Warren Buffett, Ray Dalio, George Soros to Paul Tudor Jones who all believe that these markets are heading for new lows.

Michael Novogratz doubts stock rally but, where should investors hide during these uncertain times

Michael Novogratz is bullish on gold and bitcoin, as you have probably guessed. 

The common thread running through these assets is that they are alternative investments outside the fiat monetary system. 

Michael Novogratz doubts stock rally, but is he also doubting US dollar stability going forward, in the age of QE to infinity?