David Tice, the former chief portfolio strategist for bear markets at Federated Investors, is bearish.
His 18-month target for the S&P 500 is 1,000, and he thinks gold is headed to $2,500 within the next two to three years.
Tice appeared on Fox Business News this afternoon.
“We feel just like we did in 1999 and 2007,” said Tice “[During] both of those periods, people were positive about credit being created, the central banks were easy, everybody was complacent, and we ended up having a big accident.”
“Right now the baton has been passed from the private sector leveraging to the public sector leveraging. We broke down the private securitization markets in ’08, and now the Fed and the ECB have had to enlarge their balance sheets and they’re going to destroy their currencies.”
On rising interest rates: “This is starting to pierce the government bond bubble.”
Tice didn’t stop there.
“You also see emerging market stocks start to underperform. You see Europe slowing down dramatically. China is now slowing down. Oil prices are up. This is indicative of the slower economy in the U.S.”
Here’s the full interview from FoxBusiness.com: