Says Bitcoin Cannot Be Ignored As It Brags About Gold – Bitcoin Markets & Prices News

Long-term Wall Street bear and bitcoin holder David Tice predicts the stock market will collapse 30% in a downturn that will persist for two years. Although the seasoned investor does not give the precise start date of this downturn, he warns that when it breaks, “it is likely to break hard and cause investors to suffer for a long time.”

Biden Administration Policies

In remarks made in an interview, Tice, who claims to be a “supporter of the Austrian School of Economics”, points to Washington’s “business-poor policies” as one of the main reasons for his pessimism. Specifically, the seasoned investor attacks some of the early decisions of the Biden administration by saying:

We now have a Biden administration which has a Senate and a House. They are likely to adopt much more anti-capitalist policies. They have already raised the minimum wage. This will hurt profits on the cost side.

Tice also says that “simple monetary and fiscal policies that support ticket printing will also sting Wall Street.” He concludes that this is “not good for the financial markets”.

Meanwhile, the seasoned investor, sometimes referred to as a “perma” bear, reflects on the current enthusiasm surrounding the deployment of the Covid-19 vaccine. According to Tice, “the vaccine is not really a panacea”, especially now when “there are new strains of the virus, and there is certainly a risk in the future”.

Still, Tice, the former manager of the Prudent Bear Fund, admits his timing hasn’t always been right. Additionally, the current perma bear fund, which is also designed to profit from underperformance, is down 32% in the past three months.

Bitcoin foreshadows gold

On the other hand, Tice says he expects gold, which has risen “more than 25% since the stock market bottomed on March 23,” to be the “main asset of investors.” In addition, the seasoned investor believes that “gold is significantly under-held by individuals and portfolio managers.”

In addition to his belief that “gold stocks are incredibly cheap,” Tice says bitcoin’s performance can be taken as an indicator of the precious metal’s future performance. Tice says:

I don’t think bitcoin can be ignored, ”Tice said. “We saw the price of bitcoin go from $ 10,000 to $ 40,000, which I think potentially foreshadows what could happen in gold.

In 2008, Tice sold the Prudent Bear Fund and at the time, the fund’s value had grown at an annualized rate of 7.97%, while the S&P 500 was losing 1.38% per annum. It remains to be seen whether Tice, who claims to have been “at the start of 1998, 1999 and 2006-2007”, will be able to take advantage of his latest bearish prediction.

Do you agree with Tice’s claim that bitcoin foreshadows what could happen to gold? Let us know what you think in the comments section below.

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