• Home
  • About
  • Contact Us
  • Privacy Policy

Superior Invest

Investments with confidence

  • Budgeting 101
  • Debt & Credit Tips
  • Saving Money
  • Finance Videos
  • Personal Finance News
  • Personal Finance Books

Coronavirus unleashing an ‘economic shock wave,’ Mark Yusko warns




Leave a Comment


Hedge fund manager Mark Yusko is telling investors to brace for a nearly once in a lifetime downturn.

The Morgan Creek Capital Management CEO and CIO sees the Great Depression as the closest comparison to what’s happening to the coronavirus ravaged economy. 

“The economic shock wave that’s coming is going to be like nothing that any of us has ever experienced because it’s going to be very similar to the 1930s,” he told CNBC’s “Trading Nation” on Thursday.

Since the Dow hit all-time highs in February, the index has tumbled 28%. The S&P 500 is off 26% since its record high.

Yusko believes it’s not too late to cut losses because the market shows no signs of recovering.

“Cash is king,” Yusko said. “We’re in for a very drawn out bear market.”

He estimates the fallout from the global economic shutdown to help battle the coronavirus pandemic will be counted in quarters and years — not weeks and months. Yusko’s warning came on a day when the global infection rate exceeded one million.

Yusko, who has $1.7 billion in assets under management, indicated to CNBC he’s short “a lot of stocks” right now. He’s particularly bearish on retail and consumer stocks and over-leveraged companies.

In addition to cash, he sees gold miners and emerging markets attractive from a valuation perspective.

He also sees some opportunity with bitcoin, which is among his holdings.

“It’s an insurance against the collapse of the financial system,” Yusko said. “But what I am saying is that the [stimulus] response from the government… is going to have a negative impact on currencies globally, particularly western currencies. So, you want to have something that appreciates in value. Bitcoin is going to do that.”

Disclaimer



Source link

  • Facebook
  • Twitter
  • Google+
  • Pinterest

Filed Under: Personal Finance News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Email
  • Facebook
  • Google+
  • Pinterest
  • Twitter

Recent Posts

  • Zoom Video, Novavax, Nio & more March 2, 2021
  • Activist investor Jeff Ubben to join Exxon Mobil’s board, sources say March 1, 2021
  • Warren Buffett says ‘never bet against America’ in letter trumpeting Berkshire’s U.S.-based assets February 28, 2021
  • Read Warren Buffett’s annual letter to Berkshire Hathaway shareholders February 27, 2021
  • Foot Locker, Beyond Meat, DoorDash & more February 26, 2021
  • Robinhood is still on track for a hot IPO despite the GameStop controversy February 25, 2021




Copyright © 2021 - SuperiorInvest.com - All Rights Reserved