About David Tice

Tice founded the Prudent Bear Fund (BEARX) and served as portfolio manager from 1996-2008. For the ten years ended 12/08 when Tice sold the fund, BEARX increased in value at a 8.0% annualized rate, while the S&P 500 lost 1.4% annually. Tice utilized short sales of overvalued common stocks and stock indices, as well as being long mining companies to achieve a negatively-correlated investment return profile. Mr. Tice began his investment career in 1988 by publishing Behind the Numbers, an investment research service that focused on “Quality of Earnings Warnings and sell recommendations” for more than 150 money managers who collectively managed more than $2 trillion.

His work gained national recognition through several Barron's articles he wrote, and from more than 200 appearances on business television. Tice has taken the role of a Cassandra to warn investors about the dangers of investing near the end of a secular bull market and the problems with relying on credit growth to expand the economy, and he has debated nearly every bullish Wall Street strategist. In September 1999, Mr. Tice hosted the New York symposium, "The Credit Bubble and its Aftermath" to alert the media, investors and policy makers about the risks created by the historic expansion of credit. The Symposium was covered by the next day’s front page of the Wall Street Journal. In June 2001, Mr. Tice testified before Congress regarding conflicts of interest of Wall Street and the consequences of capital markets that lack integrity.

Since his role at Federated, Tice currently serves as President of Tice Capital and executive producer and financier of a major motion picture entitled Soul Surfer, released in 2011. He’s also on the Advisory Board of XBullion, a gold-backed secure token and the Vantage Point Australian Macro Fund, a fund designed to make money in an expected Australian mortgage crisis. He’s also been a very active board member and investor in a cybersecurity SaaS company that provides ‘intelligent data’ protection.

In the Media

Hear David speak on King World News

In this interview David discusses the U.S. stock market, U.S. Dollar, gold, silver, the Fed, bailouts, sentiment, the consumer, a coming funding crisis, threats to our freedoms, capital controls and much more.

Investor David Tice Warns It’s Too Dangerous To Buy Stocks Right Now – Here’s Why

PUBLISHED ORIGINALLY ON TRADING NATION:  THU, DEC 19 20198:31 AM EST
Stephanie Landsman

SEE VIDEO:  https://www.cnbc.com/video/2019/12/18/you-should-not-be-playing-this-market-long-bear-david-tice-warns.html

Investor David Tice warns it’s too dangerous to buy stocks right now – here’s why.  Long-time bear David Tice acknowledges the market’s record-setting run could extend another six months, but the investor is too worried about a dramatic drop to try to capitalize on it.
“You should not be playing this market long,” Tice told CNBC’s “Trading Nation” on Wednesday. “This market is going to go down. There’s going to be a recession. It’s a matter of when —not if.”

Even though he sees a 50% to 60% probability the S&P 500 will “melt up” as much as 15% into the first half of 2020, Tice believes it’s  too dangerous to buy stocks right now.
“The excesses are so great. Corporate debt is so significant. We essentially have exports, commercial construction and residential construction as well as capital spending at recession levels already,” he said.
He estimates there’s a 20% chance the market will plummet 40% to 60% in 2020. Due to the sell-off’s potential magnitude, he prefers not to take on the risk.
“Puts are a great play right here,” said Tice, who added buying gold and gold stocks are also good options.
Tice, who’s recognized for selling his Prudent Bear Fund to Federated in 2008 just as the financial crisis was unfolding, is known for his bearish forecasts. He now largely invests his own money.

On “Trading Nation” in May 2017, he warned the economy was months away from a 50% or more plunge, and it would be followed by a recession. He made similar predictions in 2012 and 2014, too, but they never materialized.
“This is a liquidity-driven market. We already have earnings going down. We have a lot of issues here,” Tice said.

Disclosure: Tice has holdings in gold and gold miners.

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