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‘I am a believer in the Austrian School of Economics who says that the extent of the decline is proportional to the excess that arose during the previous boom. I was early in 1998, 1999 and in 2006 to 2007 … If it breaks, it’s likely to break hard ‘
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This is David Tice, the former manager of the Prudent Bear Fund BEARX,
in a recent interview with CNBC explains why he believes the market will eventually get a 30% hit that will last two years.
“We now have a Biden government that has a Senate and a House. “They will probably introduce much more anti-capitalist policies,” he said on Friday. “They have already raised the minimum wage. This is going to hurt the earnings on the cost side. ”
Tice, known throughout his career with a clumsy bet, had his share of crimes. The AdvisorShares Ranger Equity Bear ETF HDGE, where he now serves as an advisor, has lost about a third of its value over the past three months.
However, the fund is designed to benefit if the market is defeated, and Tice believes the day is coming. According to him, the problems are escalating, whether they are high valuations or perhaps too much confidence in the control of the pandemic.
“The vaccine is not really a panacea,” Tice told CNBC. “We have seen a lot of optimism about it, but there are new strains of the virus, and there is definitely a risk ahead.” What, then, should you do in this climate? Tice is strong on GC00 gold,
and bitcoin BTCUSD,
“Gold is dramatically underprivileged by individuals and portfolio managers,” he said. ‘I do not think bitcoin can be ignored. We have seen the price of bitcoin rise from $ 10,000 to $ 40,000, which I think possibly predicts what could happen in gold. ”
Here are his comments: