David Tice, chief portfolio strategist of Prudent Bear Funds, has one message for you: Don't believe the bullish hype. "This is a sucker's rally. The economy is really not getting that much better," he says.
Tice notes 2008 was a dismal year for Americans on three key fronts (or leg's of a stool):
* Their paycheck.
* Value of their home.
* Investment portfolio.
"We see this as being a long-going economic malaise, where all three of those legs are going to continue to be hurt," Tice Says. Given the long-term down trend, Tice argues investors should be focused on liquidity and having some portion of their portfolio holdings in negatively correlated assets. In other words, when one set of assets moves down in value, another will gain.
Persistent bear Tice adds investors shouldn't swallow biased messages from Wall Street or the media to dive into the market whole hog. Now, Tice says, is the time for wealth preservation.