Markets may be headed for a "double-barrelled taper tantrum" and investors don't have a lot of safe havens left as shelter, one CIO has warned.
That's because the Bank of Japan (BOJ), which meets later this month, may step away from its negative interest rate policy and the U.S. Federal Reserve may be on the eve of its second rate increase, Edward Dempsey, chief investment officer of Pension Partners, told CNBC's "Squawk Box" on Wednesday. Pension Partners manages around $200 million in assets.
"You're doing that in a world where all assets are aggressively priced, especially U.S. bonds, especially G-7 bonds around the world, but also all the bond surrogates, all the safe places, the low-beta places of health care, utilities, staples," he said. "There's not a lot of places to hide in this juncture if we're about to enter a second taper tantrum."
The so-called taper tantrum occurred three years ago, when emerging market assets tanked, weighing markets globally, after the U.S. Federal Reserve first broached the possibility of tapering its asset purchases. In 2013, $14.1 billion exited emerging market equity funds, while $14.04 billion was pulled from the segment's bond funds, according to data from Barclays.