Mega-IPOs and inflation will sink the Nasdaq by 35%, top-rated fund manager says
Michael Nagle/Xinhua via Getty Images Slavik Kolesnik predicts a 35% Nasdaq drop due to inflation and IPO-fueled liquidity issues. Mega-IPOs like SpaceX's will draw money from Magnificent 7 and other tech stocks, he said. A surge in core PCE inflation toward 4% will also hurt stocks, he said. A top-rated fund manager says the Nasdaq is primed to drop 35% this year, as pressure from inflation and an IPO-led liquidity crunch team up to derail the bull rally. Semiconductor and growth stocks generally have seen big swings in the last two weeks, with the Nasdaq falling 4.8% on June 5 alone. Slavik Kolesnik, a bond investor who co-manages the Leader Capital High Quality Income Fund (LCATX), which is rated 5-stars by Morningstar, said dips like this are early signs of a larger decline to come. "That's just the beginning," Kolesnik said. A major driver behind Kolesnik's call is the wave of mega-IPOs coming to market this year, starting with SpaceX's debut on Friday ....
