Dan Niles, Satori Fund manager warns that the U.S. Stock Exchanges aren’t even close to a bottom yet
He based his predictions on progress of past crisis.
Niles warned stock exchanges about the possible coronavirus pandemic consequences back in February, he said in interview with Yahoo! Finance. Even so, investors weren’t ready for such impacts of the pandemic on American markets and economy.
Dow Jones index plunged on 20th February, when it lost about 36% of its value during a month. Even with a slight recovery in last ten days, Dan Niles does not expect stock exchange indexes to return to their previous values. “It makes me laugh to hear people say that we’ll experience V share recovery. So far it seems that we’ll be facing 10% and maybe even 20% unemployment, when it’s over,” he said.
He says we need to look back into history. It teaches us that after first fall, another one follows – around 30% fall. “Only then we get a fair share price,” he added. For now, he sees opportunity in buying Activision, Take-Two Interacitve or Amazon shares.
