Time to sell

Posted on: August 26, 2019 at 14:15:20 CT

Remember the brutal sell-off last year when stocks suffered their worst December since the Great Depression? Something worse than that could happen in days, a Nomura analyst said.
Macro and quant strategist Masanari Takada turned heads earlier this month with his bold call for a "Lehman-like" plunge. He's sticking with this prediction as market sentiment shows no signs of improving, leading him to believe a monster sell-off could arrive this week.
"The U.S. stock market especially is facing its greatest test of the year thus far," Takada said in a note to clients on Monday. Low sentiment is poised to prompt "panic-selling by fundamentals-oriented investors and systematic selling by trend-following technical investors along the way," he said.