Tens of millions of household savings and retirement funds in jeopardy

07/05/2024

The warning was aired by private equity fund manager Grant Cardone Sunday
As proof, the 20-year vet pointed to the history of the rising S&P’s yield curve
It’s been inverted for 500 days, something that has occurred rarely historically

Millions of Americans will have their retirement and savings destroyed by a looming stock market plunge of some 50 percent, one economist has warned.

The word of caution was provided by private equity fund manager Grant Cardone Sunday, as the Dow wrapped its third positive day in a row. Prior to that growth continuing Monday, the 66-year-old real estate investor said the state of the US stock market is a cause for concern.

As proof, the 20-year vet pointed to the history of the also rising S&P’s yield curve, which has been inverted for over 500 days. This has only happened three times in the past century, he said – citing crises in 1929, 1974, and 2009 that came after.

Following each of these periods, the market experienced declines of more than 50 percent, erasing billions from Americans 401Ks in the process. Such retirement funds are indelibly linked to both stock market indexes.

Taking to X, Cardone emphasized the compounded threat by prospective a 50 percent loss in retirement accounts and current rates of inflation, which could make the total loss feel more like 75 percent, he said.

tens of millions of household savings and retirement funds in jeopardy

Irivate equity fund manager Grant Cardone – who has previously provided his expertise to firms like Googe and Morgan Stanley – has warned that millions of Americans are poised to lose their retirement and savings by a looming stock market plunge to the tune of 50 percent

Taking to X ,Cardone emphasized the compounded threat by prospective a 50 percent loss in retirement accounts and current rates of inflation, which could make the total loss feel more like 75 percent, he said

‘WARNING: Stock Market is due for 50 percent correction taking S&P below 2674,’ he wrote, sharing a graph showing the telling yield curve sported by the all-important index.

‘Tens of millions of households will have their retirement & savings destroyed by being invested in stock market at these levels.’

‘The yield curve has been inverted for +500 days,’ he added.

‘Each time markets declined MORE than 50%, [ a financial crisis followed].’

‘If your retirement account loses 50 percent before considering the destruction of your principals’ purchasing power due to inflation resulting in a 75 percent loss,’ he concluded.

‘I have helped thousands of people move there retirement accounts (with no penalty) to have their money backed by real assets providing cash flow to your retirement account monthly & when it’s time to retire you live off the cash flow not the principal.

‘To see if your plan qualities, text 305-407-0276.’

The warning comes on the heels of another cautionary statement from the expert, who has worked as a consultant for firms like Google, Morgan Stanley, Toyota, GM, Nissan, Infiniti, Reinhardt, Carrier, and even the U.S. Army.

As proof, the 20-year vet pointed to the history of the also rising S&P’s yield curve, which has been inverted for over 500 days

his has only happened three times in the past century, he said – citing financial crises in 1929, 1974, and 2009 that came after. Pictured, foreclosed properties for sale on June 15, 2009, during the Great Recession

Following each of these crises, the market experienced declines of more than 50 percent, erasing billions from Americans 401Ks in the process. Such retirement funds are indelibly linked to both stock market indexes

The warning comes on the heels of another cautionary statement from the pedigreed expert, who in December told Fox News the ‘greatest real estate correction’ of his lifetime was on the horizon

He called it a ‘great opportunity’ for individuals and family buyers, as Manhattan rents dropped for this first time since the pandemic. Mortgages and inflation, meanwhile, remain sky-high

Back in December, he told Fox News the ‘greatest real estate correction’ of his lifetime was on the horizon – calling a ‘great opportunity’ for individuals and family buyers.

‘It [real estate correction] is going to be a great opportunity for individuals, regular, everyday people to actually grab trophy real estate from institutions,’ he said at the time

‘This has never happened in the country, it’s going to be at epic levels.’

As he aired that warning, Manhattan rents dropped for this first time since the pandemic, a welcome sign of respite for long-wary Americans.

Mortgages and inflation, however, remained sky-high – a phenomenon that has since worsened months later, following a series of rate hikes to protect the dollar’s purchasing power.

On Monday, Cardone shared another graph showing how he believes his previous forecast is still to come, and how rents have remained stagnant for the past few months after an alarming skyrocket following the the first year of the pandemic.

On Monday, S&P500 futures tiked lower by 0.02 percent, after gainin 1 percent during the day’s main trading session

As for the Dow, the index wrapped its fourth positive day in a row, rising nearly .5 percent despite a below expectations job report for the third quarter

Cardone – seen here at this year’s 10X Growth Conference in Hollywood Florida – has worked as a financil consultant for firms like Google , Morgan Stanley, Toyota, GM, Nissan, Infiniti, Reinhardt, Carrier, and the US Army

‘Flat rents will stop new construction and Create MASSIVE supply problem & benefit real estate investors with 25-30% rent growth starting in 2026-28,’ he said.

He blames the Federal Reserve for ‘single-handedly’ killing the housing market with raising interest rates, recently saying ‘[Fed Chairman Jerome Powell] has not controlled inflation. He has failed miserably.

‘What he has actually done is created and, in the meantime, stopped the housing industry.’

To jump-start the industry, Cardone is urging Powell to ‘get out of the way’ and ‘let the market to do its thing’.

He added: ‘Interest rates will have to come down in order for pricing to come down. This is actually a contradiction to what most people think.

‘But when interest rates come down, mortgage applications will go up and people will start selling their homes.’

House prices remain high, but Grant hopes that if mortgages become more affordable, they will drop as more people sell their homes

To mitigate risks, Cardone recommends retirees transitioning their investments from the stock market-reliant 401ks to real assets that generate monthly cash flow, such as property.

Citing how he has assisted thousands in doing just that without any penalties, he claimed it will allow individuals to depend on income from these assets during retirement rather than watching their savings wane

The tide does seem to be turning – Manhattan rents dropped for the first time in over two years late last year – as a glut of empty apartments force owners to cut costs.

Meanwhile, a separate report from real estate company Redfin painted a similar picture for the US market as a whole. Rents made the biggest drop in over three years to November, amid a recent boom in vacancies.

Mortgage rates on the other hand continue to climb. It now takes around 41 percent of the median household income to cover monthly principal and interest payments – for the past 35 years it has averaged less than 25 percent, ICE noted.

To mitigate risks, Cardone recommends retirees transitioning their investments from the stock market-reliant 401ks to real assets that generate monthly cash flow, such as property.

‘I did this for my sister and it changed her life forever,’ the expert assured, after previously chiding the US for becoming a ‘renter’s nation’.

‘It’s unaffordable for people to own a home today,’ he told Fox News, before putting his homes in Malibu and Miami for sale.

As for why, the financier cryptically wrote on Twitter this month: ‘I know something.’