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 Taxicab Tenner: AXA IM's Nicolas Trindade

Taxicab Tenner: AXA IM's Nicolas Trindade

After a summer break, it is the turn of AXA Investment Manager's Nicolas Trindade to give a £10 view of how fixed income is faring.

Play Wealth Manager Olympics: the Relay

Wealth Manager Olympics: the Relay

In the final round of the Wealth Manager Olympics, our intrepid athletes team up for the relay.

Play Wealth Manager Olympics: the Shot Put

Wealth Manager Olympics: the Shot Put

After busting a gut in the 100m sprint, our wealth manager Olympians displayed their brute strength in the shot-put.

Read More
Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter