“
“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 early 1998, 1999 and 2006 to 2007 … When it breaks, it’s likely to break a lot ‘
”
This is David Tice, former manager of the Prudent Bear Fund BEARX,
explaining to CNBC in a recent interview why he believes the market will have a 30% success that will last two years.
“We now have a Biden administration 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 affect profits in terms of costs. ”
Tice, known for making bearish bets throughout his career, has had a plethora of incidents. In fact, the AdvisorShares Ranger Equity Bear HDGE ETF, where he is now an advisor, has lost about a third of its value over the past three months.
However, the fund is designed to benefit when the market is battered and Tice believes the day will come. The problems, he said, are piling up, whether they are high ratings or perhaps overconfident in gaining control of the pandemic.
“The vaccine isn’t really a panacea,” Tice told CNBC. “We’ve seen a lot of optimism about this, but there are new strains of the virus and there are certainly risks in the future.” What should an investor do in this climate? Tice is bullish on GC00 gold,
and bitcoin BTCUSD,
“Gold is dramatically under private ownership and portfolio managers,” he said. “I don’t think bitcoin can be ignored. We’ve seen the price of bitcoin go from $ 10,000 to $ 40,000, which I think potentially portends what could happen in gold. “
Here are his comments: