Fred Hickey: We’re certainly well into a bear market; Tech To Be Hard Hit By Slowing Economy

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Fred Hickey: We’re certainly well into a bear market; Tech To Be Hard Hit By Slowing Economy

Below is a new interview with high-tech strategist Fred Hickey, published in today’s issue of the Swiss Business newspaper Finanz und Wirtschaft by editor Christoph Gisiger. Excerpts from the interview re-printed with permission.

Fred Hickey, editor of the widely read investment newsletter «The High-Tech Strategist», warns of more trouble to come for stocks and spots bright investment opportunities in the gold sector.

 

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investor 1652197064It's no secret that this year has been a volatile one for the markets. The S&P 500 is down 18% year to date, while the Nasdaq Composite is off by 27% year to date. Meanwhile, the VIX, a key measure of volatility, is up 49% year to date at 24.72. However, it has spiked as Read More

Around the globe financial markets are in turmoil. For Fred Hickey that doesn’t come as a surprise. Fred Hickey  outspoken editor of the investment newsletter “The High-Tech Strategist” predicted towards the end of 2014 that the US stock market would fall when the Fed stops its stimulus program QE3. Since January, especially equities in the Nasdaq Composite index are getting clubbed. For the contrarian investor with a longtime experience in the IT industry this fits the classical behavior of a bear market. Fred Hickey warns that stocks will fall further and recommends to buy gold and shares of gold miners.

Fred Hickey – Christoph Gisiger

How will this boxing fight go on?
As the bear market process continues fewer and fewer stocks remain aloft. One by one they fall and investors crowd into a smaller and smaller number of favorites which look like they’re invincible. This classic herding behavior has happened as long as I have been watching markets. At the beginning of the bear market in 1973, for example, investors crowded into tech stocks like Polaroid, Kodak and IBM. The same thing happened with Microsoft, Intel and Compaq in the early bear market of 1990. The next time we saw the market