-- DJ Prudent Bear Fund's Tice: Dow To Hit 3000 In 3-5 Years --
NEW YORK (Dow Jones)--The stock market is still negative, and David Tice,
portfolio manager for Prudent Bear Fund, believes the Dow Jones Industrial
Average could fall to 3000 in three to five years.
In an interview with CNBC Monday, Tice said the economy is enduring one of the
largest periods of speculation in 100 years. He said the bubble was created by
credit growth and credit excess. He noted there is record business and consumer
debt.
"We've had a series of rolling bubbles, from the Internet, to telecom, and now
mortgage credit growth," he said.
Tice said it isn't healthy that someone can borrow 125% against a $400,000
home. It's excessive credit growth that keeps the economy going, but prolongs
the crash, he said.
Tice suggested avoiding technology and financial stocks, and said he likes
gold, silver, oil, gas and defense companies.
-By Roger Cheng, Dow Jones Newswires; 201-938-5393; roger.cheng@dowjones.com
(END) Dow Jones Newswires
01-06-03 0947ET- - 09 47 AM EST 01-06-03
06-Jan-2003 14:47:00 GMT
Source DJ - Dow Jones |
