Tags: David Tice | Investors | Risk | Recession

David Tice: Investors Ignore Glaring Risk of Recession

(iStock)

By    |   Monday, 08 May 2017 09:35 AM

A Wall Street bear reportedly warns “bad things are about to happen,” and a recession is on the way.

Investor David Tice predicts that the economy is months away from a deep correction that will send stocks down by as much as 50 percent, CNBC reported.

"The market has tended to go down about every seven years. It went down in 1987, 1994, 2001 and 2008," Tice told CNBC. "During these periods after the declines, it rallies like crazy. But now bad things are about to happen again," he said.

"The catalyst is we're 93 months into an economic recovery. We have the [Federal Reserve] starting to tighten. We have banks actually starting to tighten," he said. 

"The bears are always early. I've certainly always been early," said Tice. "Policymakers end up doing what they think is right in order to kick the can down the road. However, now we have so many issues."

If there is a correction, Tice says there are two protection plays investors should consider. Gold, which is down more than 6 percent over the past three years, is one of them, CNBC reported.

"You should own gold stocks... They're still priced very, very well compared to the bullion," he said.

However, other economic experts are much more optimistic.

Professional investor and media analyst Jon Najarian told Newsmax TV that the stock bull market that has been raging since Donald Trump’s election has enough energy to surge as much as 10 percent more despite some looming “bumps” on the road to more record highs.

“The Trump bump can still run,” Najarian told the “The Income Generation Show.”

“In the short term, there's going to be those bumps that could cause either (Fed Chair Janet) Yellen or the economy to pause and when we hit those, I don't think we see 10 percent corrections. But I do think that we can go up another 7-10 percent this year so again with an eight or nine-month timeframe,” he told host David J. Scranton.

“I'd say more upside than downside,” he predicted.

(Newsmax wires services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
A Wall Street bear reportedly warns "bad things are about to happen," and a recession is on the way.
David Tice, Investors, Risk, Recession
350
2017-35-08
Monday, 08 May 2017 09:35 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved