Investor David Tice has warned that it’s a “very dangerous” time for investors right now. He said the market is very overpriced in terms of future earnings and that we’re adding debt like “we’ve never seen before.” He warned against Big Tech and FAANG stocks, saying costs are going up and that Bitcoin was long in the tooth. Tice said, when looking at the lack of discipline in monetary and fiscal markets, gold is “truly the place to be.” He said that’s because gold and silver do very well as a protection against fiat money. Tice added that it’s a good time to own gold, especially gold and silver mining companies because they have never been cheaper. In related news, Wall Street investors are getting spooked by the rising numbers of COVID cases as the Delta variant spreads across the globe.
It’s ‘very dangerous’ to invest in stocks and bitcoin right now, long-time bear David Tice warns
The investor who sold his bear fund as the 2008 financial crisis was unfolding is delivering a grim long-term prognosis to Wall Street.
From the S&P 500 to Big Tech to bitcoin, David Tice warns it’s a “very dangerous period” for investors right now.
“The market is very overpriced in terms of future earnings. We are adding debt like we’ve never seen,” the former Prudent Bear Fund manager told “Trading Nation” on Friday. “We have the Treasury market acting very strange with rates falling dramatically.”
Tice, who’s known for making bearish bets during bull markets, now advises the AdvisorShares Ranger Equity Bear ETF, which has $70 million in assets under management. The fund is up 3% over the past month, but it’s off 62% over the last two years.
He acknowledges it’s tough to time the next major pullback, and he’s often early. However, Tice is convinced a market meltdown is unavoidable.
“We’re not out of the woods yet, and this is a dangerous market,” Tice reiterated.
He’s encouraging investors to weigh the risks: Try to earn 3% to 5% near-term gains while contending with the threat of a 40% pullback? Tice thinks it’s a bet not worth taking.
Tice is particularly worried about Big Tech and the FAANG stocks, which include Facebook, Apple, Amazon, Netflix and Alphabet, formerly known as Google.
“A lot of money has been thrown at Alphabet and Microsoft, Apple and Facebook, Twitter, etc.,” noted Tice. “Costs are going up in that sector.”
You can read the full article, here.
CNN Business/Paul R. La Monica
Dow futures sink more than 500 points as Delta variant fears hit Wall Street hard
Wall Street investors are getting spooked by the rising numbers of Covid-19 cases as the Delta variant spreads across the globe.
Dow futures were down more than 500 points Monday, a drop of 1.5%. The S&P 500 and Nasdaq futures were each more than 1% lower as well.
Investors feared that the Delta coronavirus variant could threaten the US economic recovery. Shares of companies in sectors that were widely thought to benefit most from the reopening of the economy are getting hit the hardest.
Airlines American (AAL), United (UAL) and Delta (DAL) were all down more than 3%. Cruise operators Carnival (CCL), Royal Caribbean (RCL) and Norwegian (NCLH) each fell more than 4%.
Energy stocks plummeted as well following a more than 3% drop in oil prices. Chevron (CVX) and Exxon Mobil (XOM) were down nearly 3%.The OPEC+ group of nations also agreed over the weekend on a deal to produce more oil, a move that could boost supply and reduce crude prices.
And small American companies were also getting hit particularly hard. Futures of the Russell 2000 (RUT) were down more than 2%. That index primarily holds shares of small cap firms that generate more of their revenue from the United States than international markets.
You can keep reading, here.
Market expert: All eyes will be on drop in 10-year Treasury yield
UBS Managing Director and Senior portfolio manager Jason Katz on markets reacting to uncertainty amid economic recovery.
Watch the full video, here.