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“If the nightmare scenario plays out as I suspect it may then the debt situation gets worse. There is currently no exit strategy and the reaction to the crisis of policy makers remains a big worry.”
As a result, Fry is telling investors to play it safe and buy physical assets like land.
“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.
The comments mirror those of bearish Bob Janjuah from RBS, who told CNBC on Friday that we are facing big stock market losses and told investors to get into gold before G20 governments attempt to throw another $15 trillion in quantitative easing in a bid to jump start the economy.
“The policymakers' response to the crisis has been new debt and this is an old game” said Janjuah.
“Over the next 6 months we will see private sector deflation pushing 10-year yields down to 2 percent," he predicted.
“This will see the policy makers mistakenly attempt to kick start the economy and market with a global quantitative easing program worth between $10 and $15 trillion dollars.”
“Over the next 6 months we will see private sector deflation pushing 10-year yields down to 2 percent," he said. "This will see the policymakers mistakenly attempt to kick-start the economy and market with a global quantitative easing program worth between $10 and $15 trillion dollars."
With that in mind, Janjuah says Friday's non-farm payroll number is a "complete nonsense."
"Anyone trading today’s bogus number, well good luck to them,” he added.
Get out of Banks, Get into Gold
Like most bears, Janjuah says investors should get into gold and likes big mega cap stocks with no debt, the ability to set prices and exposure to Asia. One area he will not touch is the banks.
“We are seeing a repeat of 2007 and 2008 with the inter-bank market in trouble, people are ignoring this," he said, adding that if he cannot see a bank's balance sheet, he cannot make a decision to buy it.