Never Seen Risk Like This Before in My Career – Ed Dowd

 Ed Dowd, a former Wall Street money manager, has shared a warning about an upcoming financial crisis that he believes is just beginning. His latest report, "US Economy Outlook 2026," outlines significant risks that the U. S. economy may face in the near future.

1. Credit Destruction:

• Dowd has indicated we are at the start of a cycle of credit destruction. Recently, BlackRock reported a 19% cut in the value of its private debt fund.

2. Economic Risks:

• Dowd identifies three major risks for the U. S. economy in 2026:

• Housing Crisis: There is a potential crisis in the housing market, exacerbated by reduced immigration and ongoing deportations. With incomes not matching housing prices, Dowd predicts home prices may need to drop by 25-30% within two years for recovery.

• Stock Market Bubble: Current stock valuations are reminiscent of the Dot Com bubble, driven by speculation around AI. Dowd expects this bubble to burst soon.

• China's Economic Crisis: China is facing a severe economic downturn that could trigger a global contagion affecting countries like Japan, South Korea, and eventually the U. S., leading to a liquidity crisis.

3. Shadow Banking System:

• Dowd suggests that the first signs of economic troubles in 2026 will emerge from the shadow banking sector, where significant loan growth has occurred without proper oversight.

4. Gold and Silver Outlook:

• Despite recent market volatility, Dowd remains positive about gold and silver. He projects that gold could reach $10,000 per ounce by 2030, driven by strong demand from banks and industrial users.

Dowd's insights suggest a turbulent economic landscape ahead, characterized by significant risks in housing, stock markets, and global financial dynamics. He remains optimistic about the future value of precious metals amid these challenges. 

https://usawatchdog.com/never-seen-risk-like-this-before-in-my-career-ed-dowd/