Stocks could reach more than 10% when the true cost of the pandemic is revealed, according to the boss of a $ 4.5 billion wealth manager

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Caetano Barreira / Reuters

  • Stocks could plummet 10% or more by the end of the summer once the real fallout from the coronavirus pandemic is clear, Peter Boockvar of the Bleakley Advisory Group told CNBC on Wednesday.
  • The market has wiped out bad economic data as a shutdown caused by the shutdown, but that could change in August or September when the number of businesses and jobs lost is revealed, said the manager of Wealth Manager 4.5 billions of dollars.
  • “This is when the bowel test will take place,” said Boockvar. “The market ignores all the bad news about the hope that things will obviously improve upon reopening. “
  • Visit the Business Insider home page for more stories.

Stocks have upped the slowdown in US growth and the rise in unemployment to hit new highs in recent weeks. They could drop 10% or more by the end of the summer when the lasting damage of the pandemic is revealed, the boss of a $ 4.5 billion wealth manager warned on Wednesday in an interview with CNBC.

The “extraordinarily expensive” stock market “threw out all the bad data because it was self-imposed,” said Peter Boockvar of Bleakley Advisory Group.

“When you stop, you hurt yourself. ”

Read more: Famous strategist Tom Lee managed to push the 40% market hike up from his worst crash. Here are 17 crowded stocks he recommends for higher returns as the recovery accelerates.

Boockvar did not say how many businesses can reopen, how many employees will get back to work, and how much households and businesses will spend until August or September.

“This is when the bowel control will take place,” he told CNBC. “The market ignores all the bad news in the hope that things will obviously improve upon reopening. ”

Mark Cuban, star of “Shark Tank” and billionaire owner of the Dallas Mavericks, also noted uncertainty about future jobs and demand in a recent Real Vision interview.

Read more: A fund manager who has crushed 98% of his peers in the past decade has told us about 4 themes he is betting on and 4 on which he is betting – and why the last market rally still has room to run.

“Once we start to really have definitive data on the other side, people will sell on the information, and if I were to bet, that’s all,” he said.

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