Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of 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 JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter