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Expert is Bullish on the Economy

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Toro

By Robin Loving

A lot of people are talking about a financial market crash on the horizon. Mark Clawson thinks not. Come to Rotary Tuesday, October 10, at 12:30pm to hear his point of view. The presentation will be free and in English at Hotel Misión, Salida a Querétaro 1.

“Analysts are saying that the market is topping, that valuations are too high, and that North Korea is going to start a war. But the fact is, we haven’t seen the kind of sentiment that would indicate that we are near a bull market top. Bull markets top when you start to see the kind of sentiment that is showing up in Bitcoin. At market tops, mom and pop investors flood into the market. They see their neighbors getting rich and they want to be a part of that,” said Clawson, a former securities industry professional.

“Sentiment was very extreme during the tech bubble in 2000 and the real estate bubble in 2007. Bubbles are about emotions although, granted, the central banks are a contributing factor. Their monetary policy has been to print too much money and keep interest rates too low for an extended period of time. But the main cause is human emotions,” continued Clawson.

“When markets go up for a number of years, people convince themselves that this is normal, expecting prices to continue to rise. They watch people around them making money and they want to do the same. This is called herd mentality,” said Clawson.

“Bitcoin is a new currency created in 2009 by an unnamed person using the alias Satoshi Nakamoto. Bitcoins can be used to buy merchandise anonymously. Transactions are made with no banks involved. International payments are easy and cheap because Bitcoins are not tied to any country or subject to regulation. Small businesses like them because there are no credit card fees,” continued Clawson.

“Bitcoin is exhibiting all the signs of a bubble. It has rallied over 400 percent recently. This is all a sign of emotions, not fundamentals, driving the market. Bitcoin’s bubble will end just like every other bubble. It will run out of buyers. Prices will collapse in a waterfall event and people will lose all of their investment. Governments are not going to allow people to create their own currency,” concluded Clawson.

Clawson retired from the securities industry in 2002 but continues to track financial markets because he has always been intrigued by helping people help themselves with their investment portfolios.

Rotary is where neighbors, friends, and problem-solvers share ideas, join leaders, and take action to create lasting change. For more information, contact President Fred Collins at presidentmidday@berkleyline.com and see RotaryMiddaySMA.org

Rotary Presentation

“Expert is Bullish on the Economy”

By Mark Clawson

Tue, Oct 10, 12:30pm

Hotel Misión, Salida a Querétaro 1

Free

 

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