U.S. markets, which have already taken a beating this month, could fall as much as 20 percent next year, according to a trading strategist.
Speaking with CNBC on Wednesday, Todd Horwitz, chief strategist at investment advisor Bubba Trading, predicted that next year is going to be “very rough.” For 2018, major indexes in America such as the Nasdaq and S&P 500 have so far fallen more than 10 percent.
“I do think we’re going into a recession, I think that next year is going to be a very rough year for markets and I can see another 10 to 15 to 20 percent, and a sell-off,” Horwitz said.
“I think we’re entering very rough times because of all these things that are going on, because of the weakening economy,” he said.
One of the big problems is debt, Horwitz told CNBC’s Nancy Hungerford: “We’ve got way too much debt in this country.”
Total corporate debt in America had swelled to nearly $9.1 trillion halfway through 2018, according to Securities Industry and Financial Markets Association data.
Horwitz said U.S. banks are “probably over-leveraged once again.”
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