U.S. Stocks May Slide 24% as Recession Looms, GMI’s Pal Says

The Standard & Poor’s 500 Index may fall as much as 24 percent and the euro might tumble to $1.20 if the U.S. economy slows further and Europe’s debt crisis widens, said Raoul Pal, the former GLG Partners Inc. fund manager currently writing the Global Macro Investor strategy sheet.

“I think with the European situation seemingly unresolvable, it’s likely we will see accelerated downside in the latter part of the summer,” Pal, who also worked in hedge-fund sales for Goldman Sachs Group Inc. and predicted the financial meltdown of 2008, said in a phone interview from Javea, Spain. “It does all depend on the U.S. economic data, but the highest possibility for me is we are going into a recession.”