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“I believe in the Austrian School of Economics, which says that the magnitude of the decline is proportional to the excesses created during the previous boom. I was in the beginning of 1998, 1999 and 2006 to 2007 … When it breaks, it is likely to be difficult ‘
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This is David Tice, the former BEARX manager for the Prudent Bear Fund,
explaining to CNBC in a recent interview why he believes the market will end up taking a 30% coup that will last for two years.
“Now we have a Biden government that has a Senate and a House. They are likely to adopt much more anti-capitalist policies, ”he said on Friday. “They have already raised the minimum wage. This will hurt the cost-side gains. ”
Tice, known for making pessimistic bets throughout his career, had his fair share of shooting failures. In fact, the ETF HDGE AdvisorShares Ranger Equity Bear, where he now serves as a consultant, has lost about a third of its value in the past three months.
The fund, however, is designed to benefit when the market is defeated, and Tice believes that day is coming. The problems, he said, are mounting, whether they are high assessments or perhaps putting a lot of faith in getting control of the pandemic.
“The vaccine is not really a panacea,” Tice told CNBC. “We saw a lot of optimism about this, but there are new strains of the virus and there is certainly a risk in the future.” So, what should an investor do in this climate? Tice is optimistic about GC00 gold,
and BTCUSD bitcoin,
“Gold is drastically subcontracted by individuals and portfolio managers,” he said. “I don’t think bitcoin can be ignored. We saw the price of bitcoin go from $ 10,000 to $ 40,000, which I think is a potential harbinger of what could happen with gold ”.
Here are his comments: