On the heels of more Executive Orders from the Trump administration, today the man who has become legendary for his predictions on QE, historic moves in currencies, warned King World News that we now have the perfect recipe for a global disaster.

Global Disaster & The Antidote
Egon von Greyerz:  “Investors in most countries make the mistake of measuring their returns based on their local markets and their domestic currency. This might have worked when they only had access to their local investment market. But that time is long gone. Now we have a global market and most Western markets have access to securities worldwide. In most countries, whether it is Germany, the UK or Japan, investors measure returns in their local currency. Where that is most prevalent is in the US because of the size of the US economy and the importance of the dollar. This means that few Americans look at investment markets or currencies in other countries…

Egon von Greyerz continues:  “Recently someone commented that I personally have not seen the US stock market as a good place to invest and therefore missed a massive opportunity. That is a correct observation. I consider a market which is greatly overvalued as high risk and therefore best to avoid even if it can go higher. Of course someone who sold the US stock market in 2000 bought back in 2002, got out in 2007 and invested again in 2009 could have made a lot of money, but that is not the way the average investor trades except in hindsight. 

There are two main types of investors. The typical investor seldom sells and therefore rides through every storm in the hope that stocks go up perpetually. That theory has worked wonderfully for long periods in the last 100 years. There have of course been periods of severe exceptions like after the 1929 crash and the 1932 bottom. Investors at that time had to wait 25 years to get their money back. 

Then there are investors who trade the market regularly. Many of these buy high and sell low, thus continuously underperforming the market. ….More Here