Wednesday, June 9, 2010

Markets About to Turn Nasty, Buy Barbed Wire: Advisor

This is CNBC here. Which is good, because I'm not entirely sure my ex-wife took me seriously when I told her I was leaving New Jersey because it's not going to be a pleasant place over the next few years. And I'm sure when I notify the rest of my family they'll think me crazy as well. Just imagine the most densely populated state in the union in the midst of an economic crash where there's no food or water. It is hard to imagine, this sort of thing happening in America. I understand the disbelief. But the time will soon be at hand when reality will set in and stupefied Americans will hold their heads in their hands wondering how this could ever happen to us. I won't be around when they set out to steal other people's food and water.

    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.

Read it all.