In an interview with the FOX Business Network’s Stuart Varney, Todd Horwitz, chief strategist at BubbaTrading.com, said he expects to see the S&P 500 drop down in the 1500-point range by the end of this year.
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Horwitz said the reason for the call is central banks that have become too involved in economic policy.
“Every time you devalue the currency, you create less opportunity for the middle class to survive and make more money. You create less opportunity for the banks to be willing to want to lend out money,” he said.
Horwitz continued by saying the nation’s biggest banks aren’t lending money at rates they once did, and that it will create a big problem down the line.
“They’re keeping their money with the full faith and credit of the United States government. They’re taking at zero and giving back at full faith. However, they get to lend at 1 to 1, but when they lend it out to the average guy on the street, they can lend it 9 to 1, and that’s where they make their money,” Horwitz said.