Money Manager Lekas: Dow Will Crash to 4,200

Friday, 21 May 2010 12:46 PM
By: Dan Weil

Rising U.S. interest rates and continued debt bailouts around the world will send U.S. stocks crashing at least another 60 percent, says John Lekas, chief executive and portfolio manager at Leader Capital.

The Dow Jones Industrial Average will hit 4,200 to 5,000 in the second quarter of 2011, he says.

Lekas wasn’t impressed with the nearly $1 trillion plan to stave off Europe’s debt crisis.

“We don’t think it’s enough. It’s kind of like feeding an alligator breadcrumbs,â€