Long-time bear David Tice has warned investors to expect at least a 30% fall in stocks in a downturn that lasts two years, reports CNBC. Tice cites business-unfriendly policies from Washington as one of the most likely causes of the stocks’ decline.
- Tice believes President Joe Biden’s administration is likely to enact anti-capitalist policies, citing the example of minimum wage, which will hurt businesses.
- Easy monetary and fiscal policies that support money printing will also adversely affect stocks-Tice
- Tice also cites an overvalued market and coronavirus vaccine concerns as a potential issue for financial markets.
- Tice managed the Prudent Bear Fund before selling to Federated in 2008, just before the financial crisis unfolded.
- Tice, now the advisor to the AdvisorShares Ranger Equity Bear ETF, is known for making bearish bets during bull markets.
- While Tice acknowledges his timing hasn’t always been on the mark, he believes markets get extended, but when it breaks, it breaks hard, causing investors to suffer for a long time.
- Tice is advocating for Gold since it is under-owned by individuals and portfolio managers while Gold stocks are relatively cheap.
- Tice also recommends bitcoin as an alternative investment, citing the current rally of the digital currency.
Global stocks are currently declining. SPY is down 0.19%, DAX is down 1.66%, FTSE 100 is down 0.84%.
