David Tice, a long-time Wall Street bear and bitcoin holder, has argued that the flagship cryptocurrency cannot be ignored, at a time in which he predicts the stock market will crash and endure a 30% downturn that will last for two years.
Tice, during an interview with CNBC; said he expects the stock market to crash over business unfriendly policies from Washington. After pointing out the Biden administration’s influence, he said:
They’re likely to enact very much more anti-capitalist policies. They have already raised the minimum wage. That’s going to hurt earnings on the cost side.
The analyst added that easy monetary and fiscal policies that support money printing are “not good for financial markets.” Tice is known for running the Prudent Bear Fund, which was sold to Federate in 2008. He is now an advisor to the AdvisorShares Ranger Equity Bear ETF, which is designed to profit from underperformance and is down 32% in the last three months.
Tice also pointed out that problems are piling, pointing to the overvalued stock market and coronavirus vaccine problems. Per his words, the “vaccine is not really a panacea,” as there are new strains of the virus, and “there is certainly risk going forward.”
As an alternative, the analyst pointed to gold, which is up more than 25% since the stock market bottom in March, and is “dramatically under-owned by individuals and portfolio managers.” After claiming “gold stocks are incredibly cheap,” he said bitcoin cannot be ignored:
I don’t think that bitcoin can be ignored. We have seen the price of bitcoin go from $10,000 to $40,000 which I think is foreshadowing potentially what might happen in gold.
During the interview, Tice pointed out he is a believer in the Austrian School of Economics, and that the magnitude of the market’s decline should be proportional “to the excesses created during the prior bottom.”
He admitted his timing hasn’t always been on the market but claims to have been “early in 1998, 1999 and in 2006 to 2007.”
Featured image via Pixabay.
