Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Dr Doom: Brace yourself for a 10-20% US market fall

Dr Doom: Brace yourself for a 10-20% US market fall

Renowned investor Marc Faber has been buying 10-year Treasuries on the back of concerns that the US market could fall by 10-20%.

Faber, nicknamed 'Dr Doom', told CNBC that he does not believe the US market looks 'healthy' right now.

‘The US market is in a very dicey position where it could easily drop 10-20%,’ he said, highlighting momentum stocks such as technology and biotech have already experienced such falls.

As a result, Faber said he is not comfortable piling the majority of his cash into equities and owns 10-year Treasury notes to give him a degree of security. He also expects Treasuries could benefit if money flows out of riskier assets.

While he acknowledged that 10-year notes yielding 2.55% were by no means attractive, he said it still represents an improvement on cash.

Overall he views equity markets as ‘relatively expensive’, with some value available in Europe and emerging markets.

‘I think we are bracing for a general asset deflation. I think the system is still very vulnerable. I'm not predicting a complete collapse because money printing can go on almost endlessly but it will have...unintended consequences,’ Faber added.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Liontrust ESG head says sustainable investment doesn't mean low return

Liontrust ESG head says sustainable investment doesn't mean low return

Peter Michaelis talks about ethical investment growth and where he sees future opportunites.

Play Are platforms the biggest barrier to wealth manager ETF take-up?

Are platforms the biggest barrier to wealth manager ETF take-up?

Citywire hosted a roundtable discussion to find out how and if wealth managers are using ETFs in their clients' portfolios and the challenges they face trading through different platforms.

Play SVM's Veitch on what's next for banks

SVM's Veitch on what's next for banks

SVM fund manager Neil Veitch is finding value in what he describes as unstable financials and talks through his favourite small caps.

Read More
Your Business: Cover Star Club

Profile: Affinity’s Julia Warrander on the importance of diversity

1 Comment Profile: Affinity’s Julia Warrander on the importance of diversity

'Sometimes there are 10, sometimes 20 people around a table and, more often than not, I’m the only woman,' says the Affinity Wealth co-chief investment officer

Wealth Manager on Twitter