"Unfriendly Biden to Businesses... Likely to Spur Stock Market Decline"

Wall Street Pessimist Thais: "US Stock Market Will Drop 30%"

[Asia Economy Reporter Yujin Cho] David Teis, a leading pessimist on Wall Street, warned that the US stock market will fall by at least 30%.

According to CNBC on the 24th (local time), Teis appeared on the Trading Nation program and predicted that the US stock market would drop by at least 30% during a bear market lasting about two years.

He cited the Biden administration's shift to policies that are not business-friendly as the cause of the market decline. Teis said, "With control of both the House and Senate, the Biden administration, now empowered, is expected to implement even stronger anti-capitalist policies."

A representative example of anti-capitalist policies is the increase in the minimum wage. The Biden administration proposed a $1.9 trillion (approximately 2,089 trillion won) COVID-19 pandemic relief budget to Congress, urging legislation to raise the federal minimum wage to $15 per hour, stating that "no one working 40 hours a week should live below the poverty line."

Teis pointed out, "Raising the minimum wage will increase costs for companies and harm profitability."

He also claimed that the funds released into the market through monetary easing would trouble Wall Street, arguing that the new Biden administration is only implementing policies unfavorable to the financial market.

Teis, who managed the Prudential Bear Fund during the 2008 financial crisis, is currently an advisor to the AdvisorShares Ranger Equity Bear ETF, betting on a bear market.

He expressed concerns about the overvalued market and the COVID-19 vaccine, saying, "More problems are accumulating recently." He added, "The vaccine is not a cure-all. We have seen much optimism, but there are new variants of the COVID-19 virus, and there are certainly risks ahead."

He did not specify a concrete timing for the market downturn. He said, "Markets tend to expand, but when they break, they can break severely, causing investors to suffer for a long time."