David Tess, founder and former fund manager of Prudent Bear Funds, the largest short fund in the US, warned that there were huge risks in the market.
From the S & P 500 to big technology companies to Bitcoin, David Tess warned that this was a "very dangerous time" for investors.
"in terms of future earnings, the market is overvalued. We are increasing debt in ways we have never seen before, "says Mr Tess. "the US Treasury market behaved very strangely, with interest rates falling sharply."
Mr. Tess, who is known for shorting in bull markets, is now an adviser to AdvisorShares Ranger Equity Bear ETF, a fund that manages $70 million in assets. The fund has risen 3 per cent in the past month, but has fallen 62 per cent in the past two years.
He admits that it is difficult to determine when the next big drop will take place, and that he often does so in advance. However, Mr Tess believes a market collapse is inevitable.
Tess reiterated: "We are not out of trouble, this is a dangerous market."
He is encouraging investors to weigh risks: trying to achieve a short-term return of 3% to 5% while facing the threat of a 40% pullback? Tess doesn't think the bet is worth betting on.
Tess is particularly worried about stocks in large technology companies and FAANG, including Facebook, Apple, Amazon、 NetflixAnd formerly known as GoogleAlphabet.
"Alphabet, Microsoft, Apple, Facebook, TwitterThe company has invested a lot of money, "Tess points out." "the cost of this industry is rising."
Bitcoin "is very dangerous to hold right now"
He also urged investors to remain vigilant in the cryptocurrency sector. Tess was bullish on Bitcoin at the start of the year, but turned bearish when it hit an all-time high in March.
"when the price of Bitcoin reaches $10,000, we have a Bitcoin position," says Mr Tess. " "however, when the price of the game reached $60,000, we thought it was old-fashioned. Recently, central banks have become increasingly vocal, with both the Bank for International Settlements (Bank for International Settlements) and the Bank of England (Bank of England) issuing profound negative statements. I think it is very dangerous to hold such a view today. "
Due to overall bearishness, Tess co-founded Morand-Tice Capital Management, a hedge fund, almost a year ago. It specializes in metals and mining stocks. Tess, who has long been bullish on gold and silver, believes this is an once-in-a-decade opportunity for investors.
"look at this lack of discipline in the monetary and fiscal markets. Gold is the place really worth going. " "for more than 5000 years, gold and silver have resisted the threat of legal tender very well."