“When you look back at Holland, you’re like, ‘That was so crazy, how could they pay that much for a tulip bulb.
In stocks, Toews is looking at SPACs, meme stocks, and innovation-themed firms and exchange-traded funds.
He said he expects the downturn would happen sometime in the next 12-24 months because the economy first has to get on completely solid footing.
One signal that a crash in stocks could be close, Toews said, is a consistent period of high volatility — rises and falls of 3% or more in single days.
Stock market valuations are indeed a widespread concern on Wall Street.
But none seem to see a sell-off of 30% or more in the months ahead — it would be hard to do so with the gargantuan economic growth that’s expected this year.
When the central bank signaled they would do this after the global financial crisis, Treasury yields spiked.
For now, though, stocks continue to inch upwards and volatility is low, a sign of a benign market, according to Toews.