Former Federal Reserve Chairman Alan Greenspan has a warning for investors.
Alan Greenspan is warning that investors to “run for cover” when a potential correction comes following a run up for the market. According to him, equity prices are reaching their peak and he doesn’t expect them to go any further.
However, Alan Greenspan notes that it is possible that stock’s will continue to increase, but this is where that damaging correction comes into play. These warnings come as the stock market is volatile due to an unclear future concerning the possible trade war with China.
“The volatility is a function of how we speak, think and feel — and it’s variable,” Alan Greenspan told CNN during an interview. “Unless you can somehow radically change human nature and how we respond, this is what you’ll always get and have been getting.”
Other concerns for the stock market include the ongoing meeting of the Federal Reserve’s interest-rate setting committee. It’s possible that the committee will raise rates again, which is causing some nervousness among investors.
Alan Greenspan’s words bring a fair amount of weight with them. At the age of 93, he has plenty of experience when it comes to dealing with America’s economy and the stock market. This includes serving as the Chairman of the Federal Reserve from 1987 to 2006. He also provides firms with consulting through his Greenspan Associates company.
As of this writing, William White did not hold a position in any of the aforementioned securities.
