Why one hedge fund veteran is urging investors to 'prepare for the worst'

In this article

Investors may want to take a step back as stocks swing amid rising geopolitical tensions.

DBi’s Andrew Beer suggests the market’s crystal ball is broken.

“It’s not normal for big markets to move as much as they are right now,” the firm’s managing member told CNBC’s “ETF Edge” this week. “Something is deeply wrong in the market’s ability to forecast the state of the world... The only thing we can all do as investors is: This is the moment to plan and to prepare for the worst. You hope for the best.”

Beer, who has spent more than three decades in the hedge fund industry, thinks it’s remarkable the number of stresses on the financial system over the past 12 to18 months hasn’t caused things to spin out of control.