DUBAI —

In a wide-ranging interview with former Federal Reserve chairman Alan Greenspan, he said the party’s over on Wall Street and that investors may soon need to “run for cover”.

In an interview aired Tuesday on CNN International’s First Move, Greenspan, who famously warned more than two decades ago about “irrational exuberance” in the stock market, told Julia Chatterley he doesn’t see equity prices going any higher than they are now.

“It would be very surprising to see it sort of stabilize here, and then take off.”

He added that markets could still go up further – but warned investors that the correction would be painful: “At the end of that run, run for cover.”

Greenspan also touched on Brexit and the trade war between America and China, saying the “winner of a trade war is one who is hurt the least.”

On whether the bull market is still intact, he said “no, it’s beginning to fumble. You can see it by the reaction in recent days. It would be very surprising to see it sort of stabilize and then take off again. But it’s happened in the past. However, at the end of that one, run for cover. We’re moving towards a stagflation type of environment, which means you’ll get both inflation and stagnation. And that is a toxic mix, and the outlook is not terribly enterprising. How long it lasts, or how big it gets, it’s too soon to tell. We’ll know it when we get on top of it.”

On why he thinks Brexit is terrible, he said

“I think it’s a terrible idea not to remain. I think the problem has really not been handled intellectually, properly. What’s causing the problem is immigration. And I think if that were handled politically, I don’t know how it’s done, I just mean it’s too far off the -– over my horizon. I think the hypocrisy would be so large as to be politically overwhelming. I mean the point being is name the problem that you’re trying to solve and solve it for the right reasons…I just don’t see any scenario, which basically says that Remain is not better than Brexit.” — SG