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
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter