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 Picton: the UK property hotspots for rental income

Picton: the UK property hotspots for rental income

Picton Property Income CEO Michael Morris reveals how he is planning to ride the ‘ripple effect’ as UK economic growth spills out from the capital across the country.

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

Brewin's Foster talks financial crisis MkII with Allianz's Riddell

This week Brewin Dolphin's head of research talks to Mike Riddell, fund manager at Allianz Global Investors, about the forces driving bonds markets in a tumultuous week for markets.

Play Henderson's Hermon: how to be defensive in smaller caps

Henderson's Hermon: how to be defensive in smaller caps

Hermon, who manages the Henderson Smaller Companies trust, talks about he will tackle a 'challenging' 2016.

Your Business: Cover Star Club

Profile: 'what we are doing at Mosaic is Darwinian'

Profile: 'what we are doing at Mosaic is Darwinian'

The changes in financial services over the last few years may leave some destitute warns Marco Sambucci of Mosaic Money Management

Wealth Manager on Twitter