Watch the full interview with Anthony Scaramucci:
US stocks are still overvalued even after the recent sharp selloffs over the novel coronavirus outbreak, according to Anthony Scaramucci, founder of Skybridge Capital and former White House communications director.
Even before the virus scare hit global stocks, Scaramucci thought the expansion wouldn't go into an eleventh year without seeing a correction in the stock market, he told Richard Quest on the CNN Business' digital live show Markets Now. The US economy is in its longest expansion in history.
"We recognize there will be more volatility and greater uncertainty," he said. "No matter what [coronavirus'] severity is, there is a perception that it's bad and it's slowing the economy."
Scaramucci is invested primarily in fixed income assets and cash with a very low exposure to stocks, for now. "I'm in the most defensive position" of the last 31 years, Scaramucci said.
The 10-year Treasury yield dropped below 1% for the first time in history on Tuesday, as bond prices went up. Yields and bonds move in opposite directions to each other.
"I'm not in love with that," Scaramucci said, because it's a "warning sign on the economic dashboard that there's a potential recession coming."
On politics, Scaramucci said that President Donald Trump should be afraid of his to-be-determined Democratic challenger, after he "has alienated a good 60% of the population."