Predictions

Just because this guy was right before, doesn't mean he's right now. There were plenty of predictions about which way the economy was headed in the mid-Oughts.  Some were going to be very right, and some were going to be very wrong - but nobody remembers the wrong ones.

For that matter, Mister Rajan throws a lot of possibilities at the wall, here. Something is bound to stick.

Having said that...yes, the stock market is in a state that can make one uncertain of the meaning of "value." There are assets out there that appear improperly priced. Cheap money may be behind it all. Bull markets don't last forever - even when they represent an economy that has barely recovered from five or six years ago.

And if the economy was to go into decline from here, the effect might be akin to one of those aftershocks that knocks down buildings weakened by the main earthquake.

In any case, his prediction last time took two to three years (depending on who's counting) to come to pass. There might be time to prepare, for anyone concerned.



Note: Do not watch this video before reading the Time article because you will not be able to get the cadence of Brawndo catchphrases out of your head.