Tags: Tice | stocks | Fed | gold

Short-Seller Tice: Stocks Likely to Plunge 60 Percent

Friday, 29 Aug 2014 08:20 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The S&P 500 may have hit a record high Wednesday, but ace short-seller David Tice, president of Tice Capital, doesn't think the good times will last.

He predicts stocks will plunge 30 to 60 percent, as market participants lose confidence in the Federal Reserve and other central banks. He also forecasts gold will soar "far above $3,000 an ounce in the not-too-distant future," CNBC reports.

December gold futures traded at $1,286.80 on the Comex Friday morning.

Editor’s Note:
Get These 4 Stocks Before 399% Stock Market Rally!


The Fed's massive easing program will fail, Tice maintains. The collapse of its "confidence game" will end with inflation rising and the Fed rushing to raise interest rates, he says. Financial markets will then suffer "a period of extreme turmoil, . . . [as] the Fed starts to lose control."

All this will be good for gold, Tice maintains. "Gold represents an unusually attractive opportunity. You have central banks around the world debasing their currencies. I've never been more confident of anything in my life," he tells CNBC.

Meanwhile, Burton Malkiel, author of the famous investing tome "A Random Walk Down Wall Street," says high valuations indicate stocks will underperform historical averages in the long term.

The cyclically adjusted price-earnings (CAPE) ratio, which includes 10 years of earnings, stands at 26.3. That trails only the market peaks of 1929, 2000 and 2007.

The CAPE ratio does reasonably well in predicting 10-year stock-market returns, Malkiel writes in The Wall Street Journal. "Long-run equity returns from today's price levels are likely to be considerably lower than their 10 percent long-run average."

Editor’s Note: Get These 4 Stocks Before 399% Stock Market Rally!

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

El-Erian: Global Economic Slowdown Remains a Concern

Saturday, 25 Oct 2014 11:55 AM

While the U.S. stock market may have rebounded sharply from its recent plunge, that doesn't mean all is hunk dory with t . . .

Kudlow: Obama's Head Will Spin From New Conservative Agenda

Friday, 24 Oct 2014 21:35 PM

The vast majority of political journalists , and I include some of my conservative colleagues , are missing a very big s . . .

Stocks Rise on Earnings, S&P 500 Caps Best Week Since 2013

Friday, 24 Oct 2014 17:09 PM

U.S. stocks rose, with the Standard & Poor's 500 Index capping its best week since 2013, as companies from Procter & Gam . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved