GO
Loading...

R.I.P. Stocks? Hedge Fund Chief Warns of Market 'Funeral'

CNBC.com
Friday, 10 Jul 2009 | 1:24 PM ET

What's the summer outlook for the market?

Steen Jakobsen of Capinordic sees a "funeral" coming.

Stocks to Fall in July, August: Hedge Fund Manager
Policymakers have been buying time and we are running out of time, Steen Jakobsen from Capinordic said Friday as to why he sees stock markets declining in July and August. "We'll be taking out the 666 (low hit in March) in the S&P (500 index)," he predicted.

"Policy makers have been buying time — and the technicals, the ticker is running out of time," the hedge fund manager told CNBC.

He explained why he believes stocks are going to fall in the remainder of July and August.

From a technical perspective, we've just finished what's called the 'fourth wave' — we're going into the final lap, in my opinion" of the rally cycle.

Second Opinions:

Jakobsen said that "valuation is back at fair valuation," eliminating the promise of more upside — and partially explaining the low trading volume that has concerned some analysts.

He points to continuing and possibly rising unemployment as another looming threat.

The hedge fund manager joked darkly that he is wearing a black necktie because "it's a funeral tie. I'm going to wear it for the rest of July and August."

More Investor Intelligence:

______________________________
CNBC Slideshows:

______________________________

______________________________
CNBC's Companies in the News:

JPMorgan Chase

General Motors

AIG

UBS

Google

______________________________
Disclosures:

Disclosure information was not available for Jakobsen or his company.

Disclaimer

  Price   Change %Change
AFF
---
JPM MLP ETN
---
UBSN
---
GOOGL
---

Featured