Bear On the Block
Yesterday was a very red day for the markets, in fact, the Dow tumbles 700 points for its worst drop since October as investors fear a Covid resurgence. On yesterday’s crunch, we discussed how the Delta variant of the COVID-19 virus as well as a multitude of other factors were behind the lack of investor confidence, but could we soon see a full-blown market meltdown? Well according to some professionals in the industry, this is a very likely scenario. According to the former Prudent Bear Fund Manager David Tice: “The market is very overpriced in terms of future earnings. We are adding debt as we’ve never seen,” “We have the Treasury market acting very strange with rates falling dramatically.” Tice is a known bear in the market right now and is particularly worried about Big Tech and the FAANG stocks, which include Facebook, Apple, Amazon, Netflix, and Alphabet, also known as Google.
But this isn’t the only place Tice is issuing warnings, crypto also seems to be on his chopping block. Although Tice began this year bullish on crypto, he turned bearish on bitcoin when it hit all-time highs in March. Most of the investments Tice has warned against such as blue-chip tech stocks as well as crypto have been the biggest gainers of this year, meaning, they also have the most room to fall back to fair value. How far that fall is and when it will come, well, no one can truly time the market. What do you think about the current state of the market? And do you agree with bears such as David Tice, or are you bullish?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.