Sprott Says S&P 500 To Fall Below March Low

Reflecting the current environment of widely divergent market opinions, Toronto hedge fund manager Eric Sprott is predicting the S&P 500 will fall below its March low of 676.53. In an interview with Bloomberg, Sprott said, “We’re in a bear market that will last 15 or 20 years, and we’ve had nine of them."

Sprott's hedge fund returned 496 percent over the last 9 years, whereas the S&P 500 has lost 32 percent in the same time period. The one asset class that Sprott is bullish on is gold, a commodity that he has been a buyer of since 2001. Sprott believes that investors have been much too eager to interpret the recent economic data as a sign of a recovery, when in reality it is just a function of fiscal machinations by the U.S. government. He argues that “We don’t have employment gains, we have less of a decline. That’s a sign of weakness. The data is weak.”