Stock Rout Was Inevitable And Will Worsen Says Leuthold’s Ramsey

Doug Ramsey, whose quantitative research into market breadth, valuation and investor sentiment foreshadowed the drubbing in American stocks last week, says the selling will get worse.

The chief investment officer of Leuthold Weeden Capital Management LLC predicted Sunday that losses in the Standard & Poor’s 500 Index could reach 20 percent. Last week’s decline left the benchmark index down 7.5 percent from its May record.

“It’s going to be pretty deep,” Ramsey said in a telephone interview. “We’re in the camp that this is not yet a big move. It’s scary, and those last two day trends look ugly.”