Peter Boockvar from the Bleakley Advisory Group, warns that there is still emerging trouble as the age of easy money is slowly fading mostly due to central banks that are pushing up borrowing costs.
Boockvar expects that a solution about the tariff issue could eventually emerge in exchange of increasing rates as fears over an escalating trade war looms.
Boockvar stated that they could acquire the resumption of steeper interest rates which would in turn cause concerns in the markets, and would then retest the S&P 500 index.
He also added that the country is late in the economy, the cycle in the market and is currently amplifying the tightening of monetary policy.
Boockvar also blamed the conclusion of quantitative easing in the U.S. and Europe for the increase in sell off risks.
According to Boockvar, the country is making progress in taking away the negative interest rates. However, there are still global bonds which are valued at trillions of dollar that possess negative yielding rates.
Boockvar does not believe that the situation will subside anytime soon. He disputed that the 10-year Treasury Yield will fall back to 3 percent, stopping the S&P 500 from surpassing its January 26 all-time highs.
Boockvar has been always cautious in approaching and navigating this contentious environment. He is pretty diversified with clients, adding that he is quite confident that gold and silver are straight up protection from further stock market sell – offs.