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“We believe that the retrospective will show that the champion of the madness on the American stock market is the period that is taking place right now.”
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This is billionaire Paul Singer of Elliott Management, who suggests that the stock market has grown quite a bit in the shark, in a letter to clients on January 28, as Bloomberg reported on Friday.
Shares on Friday capped a bruised week with sharp losses as interest rates took a slow and then sharply higher rate, with investors also worried about high valuations in everything from so-called meme shares to being beaten. above by investors who have rallied on Reddit, to bonds. , which may face an increased inflation estimate.
US government bonds, with a long history, recorded the highest monthly gain in yield since 2016, which means that the prices of risk-free fixed income bets have been affected. And investors are worried that the Dow Jones Industrial Average DJIA,
the S&P 500 SPX index,
and Nasdaq Composite COMP technology, high speed and technology powered,
face a difficult path, as higher credit rates make speculative stocks less attractive.
In any case, Singer considers that the market has come out of operation and warns that it bets on bitcoin BTCUSD,
and highly regarded companies such as electric vehicle manufacturer Tesla Inc. TSLA,
promoted in his estimation by an investment mafia, he will eventually have him and his team at Elliott’s, saying, “I told you that.”
Bloomberg reported that Elliott’s management, which prepared for the pandemic stock market crash much earlier than other investors, made money every month of 2020, even during the March massacre. The stock market benchmarks reached the end of the year on the 23rd of that month.
Elliott, which manages more than $ 40 billion, posted annualized gains of about 13 percent in its 44th year, surpassing the S&P 500 index. Meanwhile, Singer’s net worth was $ 3.6 billion, according to Forbes .
Even before the onset of COVID-19 coronavirus disease, Singer was preparing for a major market downturn. In 2017, he raised $ 5 billion for a rainy day fund in preparation for what he described in a letter as a time when “all hell” is falling apart. At that time, the market was at a standstill, remaining stubborn, partly due to the tendency of investors to buy VIX VIX with leverage,
products and treats market declines as opportunities, until this trade has imploded.
It is not clear what Singer’s hell looks like now, but it is clear that he maintains a less favorable outlook on the economy and the market, even if vaccine launches and pandemic relief legislation make the prospect of a solid recovery from the worst pandemic. in over a century more likely.