Dow Jones Rally Just a ‘Dead Cat Bounce,’ US Stock Market Could Crash 30%: David Tice

The recent Dow Jones rally is a “dead cat bounce” because the stock market is going to tank and a recession will eventually cast a dark shadow over the US economy. That’s the bleak prediction of investment perma-bear David Tice, who previously managed the aptly-named Prudent Bear Fund.

A dead cat bounce is a brief recovery from an extended bear market that’s followed by a prolonged downturn. Basically, that’s where Tice thinks the US stock market is right now.

‘We Are Now in a Bear Market’

dow jones industrial average

Looking ahead, Tice claims a 10 to 30 percent market plunge looms on the horizon, so Wall Street shouldn’t get overconfident because of the recent bull runs.

Coinbase 2

“This is a rally inside a bear market,” Tice told CNBC on February 7. “We believe we are now in a bear market. The 200-day moving average was crossed back in October…We could have something between a 10 percent and a 30 percent decline [this year].”

David Tice dow jones bear market crash

David Tice: Recent Dow Jones rally is temporary before market crash. (CNBC screenshot)

Tice founded the Prudent Bear Fund in 1995 and sold it in 2008 to Federated Investors. He says despite the stock market’s recent rallies, he believes there’s a 50-50 chance of a recession this year.

Tice cited the disastrous monetary policies of the central banks, escalating corporate debt, and the economic slowdowns in Europe and Asia as the key drivers of the forthcoming recession.

“I tend to think with this massive amount of debt that we’ve added ― and this massive about of monetary stimulus that we’ve added ― it’s going to end very badly.”

David Tice: ‘Gold Represents True Money’

Tice says if the United States and China reach a trade deal, the Dow Jones may spike as much as 20 percent, but it will eventually come crashing down.

Accordingly, he suggests that individual investors cut back on their equity exposure, saying the stock market is too risky right now. However, Tice is bullish on gold, saying everyone should buy some of it.

“I’m a believer that gold represents true money. We are in a fiat money world, and it’s dangerous not to have some gold in your portfolio.”

Tice is a perma-bear who almost always expects the worst. As an example, in May 2017, Tice issued another woeful projection, saying the stock market would crash as much as 50 percent. He made the same gloomy prediction in 2012 and 2014. Those market crashes never materialized.

Interestingly, Tice praised bitcoin in 2017, when it was enjoying an unprecedented bull run. At the time, he said bitcoin “makes a lot of sense from a transactional basis.” It’s unclear what Tice’s views are of bitcoin now, in light of the current protracted Crypto Winter.

OppenheimerFunds CIO: No Recession For 5 Years

[embedded content]

[youtube https://www.youtube.com/watch?v=I6AJUMuoAT4?feature=oembed&w=680&h=383]

Meanwhile, other market analysts say concerns over an impending recession or stock market crash are overblown. Krishna Memani, the chief investment officer at OppenheimerFunds, says the US economy is definitely slowing down a little, but it will still increase more than 2%.

Moreover, Memani says there’s no recession ahead for at least another five years, as CCN reported in January 2019.

“There’s no recession imminent. I think five more years is what we are talking about. Valuations are meaningfully better.”

“And sentiment improves with the [US-China] trade talks. If we can find that resolution and the federal government opens up again, we will be home free.”

Memani says the biggest risk in the global stock market is trade. However, he’s confident that the ongoing trade disputes between the United States and China will be resolved. Why? Because both sides have too much to lose if they don’t fix the problem.

Despite the global economic slowdown, Memani is still recommending that investors buy.

“We are telling people to buy right now because we expect these resolutions,” he said.

Featured Image from Shutterstock

<![CDATA[

]]>

Dow Jones Rally Just a ‘Dead Cat Bounce,’ US Stock Market Could Crash 30%: David Tice 1
blank
About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

blank

E-Crypto News Executive Interviews


blank

bitcoin
Bitcoin (BTC) $ 39,225.00
ethereum
Ethereum (ETH) $ 2,360.72
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 319.14
cardano
Cardano (ADA) $ 1.34
xrp
XRP (XRP) $ 0.662810
dogecoin
Dogecoin (DOGE) $ 0.223008
usd-coin
USD Coin (USDC) $ 1.00
polkadot
Polkadot (DOT) $ 14.85
binance-usd
Binance USD (BUSD) $ 1.00
USD
EUR
GBP
bitcoinBitcoin (BTC)
$ 39,225.00
ethereumEthereum (ETH)
$ 2,360.72
tetherTether (USDT)
$ 1.00
bitcoin-cashBitcoin Cash (BCH)
$ 505.48
litecoinLitecoin (LTC)
$ 137.90
bitcoinBitcoin (BTC)
33.322,58
ethereumEthereum (ETH)
2.005,49
tetherTether (USDT)
0,849524
bitcoin-cashBitcoin Cash (BCH)
429,42
litecoinLitecoin (LTC)
117,15
bitcoinBitcoin (BTC)
28,530.38
ethereumEthereum (ETH)
1,717.07
tetherTether (USDT)
0.727352
bitcoin-cashBitcoin Cash (BCH)
367.66
litecoinLitecoin (LTC)
100.30

Automated trading with HaasBot Crypto Trading Bots

Crypto Scams

Cryptocurrency Exchanges
Cryptocurrency Exchanges and the Plague of Scams and Bans
June 29, 2021
blank
What Role Do Cryptocurrencies Play In The Era Of Ransomware Attacks?
June 9, 2021
Crypto Scams On The Rise As Market Enters Bull Cycle
Crypto Scams On The Rise As Market Enters Bull Cycle
December 22, 2020
Harpreet Singh Sahni perpetrated the Plus Gold Union Coin (PGUC) scam
Sydney Concert Promoter Harpreet Sahni Involved In $50M Crypto PGUC Scam
November 2, 2020
Mining City insists that it is legit
Mining City Refutes Claims By Philippines SEC Of Being A Scam
September 23, 2020

Blockchain/Cryptocurrency Questions and Answers

Short-Sell Cryptocurrency
How to Short-Sell Cryptocurrency: A Brief Overview
July 17, 2021
Klaytn
What Is Klaytn (KLAY) And How Does It Work?
July 16, 2021
Cryptocurrencies
Our Crypto Roundup Interview Asks- Do Cryptocurrencies Have a Future?
July 15, 2021
Solana
What Is Solana (SOL) And How Does It Work?
June 26, 2021
blank
What Is Plethori Platform And How Does It Work?
June 12, 2021


CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin39,774 1.56 % 15.33 % 24.61 %
Ethereum2,376.8 0.51 % 9.90 % 24.72 %
Tether1.000 0.05 % 0.03 % 0.23 %
Binance Coin322.16 1.09 % 7.80 % 5.88 %
Cardano1.350 0.57 % 11.78 % 13.65 %
XRP0.6649 0.31 % 10.91 % 12.73 %
Dogecoin0.2244 0.52 % 13.77 % 21.76 %
USD Coin1.010 0.35 % 0.39 % 0.00 %
Polkadot14.97 1.63 % 10.78 % 17.20 %
Binance USD1.010 0.50 % 0.89 % 0.54 %

bitcoin
Bitcoin (BTC) $ 37,148.00
ethereum
Ethereum (ETH) $ 2,206.14
tether
Tether (USDT) $ 1.00
binance-coin
Binance Coin (BNB) $ 304.79
cardano
Cardano (ADA) $ 1.24
xrp
XRP (XRP) $ 0.620285
usd-coin
USD Coin (USDC) $ 0.996140
dogecoin
Dogecoin (DOGE) $ 0.201665
polkadot
Polkadot (DOT) $ 13.85
binance-usd
Binance USD (BUSD) $ 0.993797