Michael Steinhardt may have gotten out of the hedge fund business 13 years ago, but the financial pubs still take his thoughts on the market to heart.
On Tuesday the investor turned full time philanthropist told Bloomberg News that he thinks we have not seen the worst of the bear market yet.
“There are genuine, solid, fearful reasons for a bear market,” Steinhardt told Bloomberg. “I don’t think we’re at a bottom.” He added, “I can think of only one quick fix, which is a dramatic, substantial drop in the price of oil.”
While Steinhardt made hundreds of millions of dollars using an investment strategy based on contrarian thought, often betting against the big boys of the economic world, he said that this time the market is different. And even though in the old days he would have seen signs for a rally in the market, he doesn’t think it will happen now.
“There is rarely a moment such as this where as a contrarian, one sees so many reasons technically, stock market-wise to be bullish. I can’t imagine a circumstance where a market is more available, more ripe for a rally than this one,” Steinhardt said. Still, he added, “this time it’s different.”