- CNBC -
Bond markets could get very nasty over the coming months, while stock investors could take a few months off and stop attempting to trade volatile swings in the markets, Anthony Fry, senior managing director at Evercore Partners, told CNBC Monday.
“The current problems will be with us for 5 years or more and uncertainty is very high," Fry said.
"Sentiment is extremely volatile as shown by the collapse of the Prudential’s attempt to buy AIA. When the deal was thought up just a few months ago it was a very different world,” Fry told CNBC on Monday.
Fry says the best we can hope for in the current environment is a soft landing, but sees little chance of this happening.
“Look at the current situation. You have Greece, now you have Hungary and huge issues surrounding Spain and Portugal,” he said.
Fry believes many European banks have yet to fess up on losses and says governments across the world are between a rock and a hard place.
“Governments need to cut spending and raise money and if they do not do so credibly will be killed by the bond market demanding higher rates,” he said.
“I don’t want to scare anyone but I am considering investing in barbed wire and guns, things are not looking good and rates are heading higher,” he said.
- Watch Anthony Fry interviewed above.