Summers Warns Markets Are at Risk of a ‘Spontaneous Deflating’
- Retail-investor excitement ‘usually a sign of trouble’
- Ex-Treasury chief repeats call for four Fed rate hikes in 2022
Lawrence Summers
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Former U.S. Treasury Secretary Lawrence Summers warned of the risk of a “spontaneous deflating of financial markets” that have been pumped up by retail buying and exuberant investors.
There is “a lot of euphoria,” Summers said at an American Council for Capital Formation webinar on Tuesday -- pointing, among other things, to cryptocurrencies, so-called meme stocks and technology shares. “Super-excited retail is usually a sign of trouble to come,” he added.