Few investors want to hear this, but David Tice says that now is the time to take your money and run. He says that the market appears to be very dangerous at these levels and that there is a lot more risk to the downside than the upside. He believes that the best option for investors according to his note to CNBC is to take their money and run.
Tice put his views very much on display in the note that he sent to CNBC. He said that the big drops in February were just a preview of what was to come for the rest of the year. He sees it as very possible that the market could lose between twenty and twenty-five percent of its value by the end of the year. Call him an alarmist if you want to, but he has been right about these kinds of developments in the past. It may be better to prepare yourself for the worst and just hope that he is wrong about some of this.
These views are a relatively new development for this hedge fund investor. He was not in the bear camp really at all for most of the previous year. He was telling investors at that time not to bet against stocks. Of course, that proved to be pretty prudent advice by the time the year had wound down. He turned out to be very right about how things unfolded in that particular year. Is he right again about what is going to come in the year ahead?
The evidence of a market correction is largely in the fact that the market can’t seem to make up its mind at the moment about which way is the right way to trend. It will be up big one day and then down big the next. It has been this see=saw of performance that has caused so many people to give up on the hope of ever getting to the point where they are able to honestly say that they know which direction the market is headed. They can only try to predict how it will go ahead of time, but that is often wrong as day to day news pushes it this way or that. Thus, it may be best to steer clear of all of this for the time being until it is more clear as to what is going on with the news.