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David Tice: 'Take Your Money and Run' From 'Pretty Dangerous' Market

(Dollar Photo Club)

By    |   Thursday, 12 April 2018 11:52 AM

Investing guru David Tice warns savvy market players that a stock crash is inevitable amid the countless Federal Reserve and geopolitical risks clouding the economic horizon for Americans.

The renowned stock market bear wrote that investors should "take your money and run," CNBC reported.

"You guys have enjoyed the party," he recently told CNBC's "Trading Nation." "There are a lot of people dancing. But I think that could be pretty dangerous. I'd say the last couple of 10 percent declines were a sign that the band is about ready to go home," Tice warned.

Tice has interpreted the February correction as a foreshock — predicting stocks could lose 20 to 25 percent of their value by year's end, CNBC reported.

"All this volatility with the VIX [Cboe volatility index] having doubled is very, very disturbing," said Tice. "We're testing 200-day moving averages on some of the hot stocks like Google and Facebook," he said.

Investors around the world just might be heeding such warnings.

BlackRock Inc., the world’s largest money manager, said it saw net flows for its global iShares exchange-traded funds decline 46 percent in the first quarter to $34.6 billion from a year earlier, Bloomberg explained.

Choppy markets spurred traders to devote less cash to ETFs. And with good reason given that the S&P 500 index ended the quarter down 0.76 percent. ETFs charging 0.2 percent or less have accounted for 82 percent of the industry’s net flows this year, up from 77 percent in the fourth quarter, according to research from Bloomberg Intelligence.

Laurence D. Fink, BlackRock’s chief executive officer, said investors moved money in the quarter because of a spike in market volatility and changes in U.S. tax law.

“Institutional investors, in particular, reacted to these factors, by de-risking and re-balancing," Fink said in a statement Thursday. "At the same time, we also saw many corporate clients adapting to U.S. tax reform by seeking liquidity to fund future capital investment or more aggressive share repurchases. As a result of these various crosscurrents, BlackRock experienced a significant number of both large inflows and large outflows from institutional clients in the first quarter."

Wall Street stocks bounced higher on Thursday as expectations that lower U.S. taxes would fuel corporate earnings added to easing of nerves over U.S. military conflict with Russia in Syria.

“We’re seeing some early optimism ahead of earnings and there’s no bad news for the moment, be it back and forth between Russia and the U.S. or trade war situation,” said Andre Bakhos, managing director at New Vines Capital LLC in Bernardsville.

“This is first full quarter with new taxes... that is a variable that could work very positively in the favor of investors,” he told Reuters.

(Newsmax wire services contributed to this report).

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Investing guru David Tice warns savvy market players that a stock crash is inevitable amid the countless Federal Reserve and geopolitical risks clouding the economic horizon for Americans.
david tice, money, run, market, investors, stock
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2018-52-12
Thursday, 12 April 2018 11:52 AM
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