“
“We believe that a retrospective will show that the champion of the head-busting madness in the American stock market is the period that is now running out.”
“
This is Elliott Management billionaire Paul Singer, suggesting that the stock market practically jumped out of the shark in a January 28 letter to customers, reported by Bloomberg on Friday.
Stocks on Friday closed a blunt week with sharp losses, as interest rates took a slow and sudden upward course, with investors also concerned about high valuations on everything from so-called meme stocks to being whipped by investors focusing on Reddit to securities, which may be facing a reckoning with high inflation expectations.
Long-term US government bonds recorded their biggest monthly yield gain since 2016, which means that risk-free fixed income betting prices have been hit. And investors are concerned that the Dow Jones Industrial Average DJIA,
the S&P 500 SPX index,
and the Nasdaq Composite COMP, high-flying and powered by technology,
we face a difficult path as higher loan rates make speculative stocks less attractive.
Anyway, Singer believes that the market is out of control and warns that bets on BTCUSD bitcoin,
and high-value companies like electric vehicle maker Tesla Inc. TSLA,
defended in his estimation by a crowd of investors, it will eventually cause him and his team at Elliott to declare, “We warn you.”
Bloomberg reported that Elliott Management, which prepared for the pandemic stock market crash much earlier than other investors, made money in every month of 2020, even during the March carnage. The stock benchmarks reached the nadir of the year on the 23rd of that month.
Elliott, who manages more than $ 40 billion, has posted annualized gains of around 13% in his 44 years, beating the S&P 500 index. Singer’s net worth, in turn, is $ 3.6 billion, according to with Forbes.
Even before the advent of the disease transmitted by the COVID-19 coronavirus, Singer was preparing for a huge drop in the market. In 2017, he raised $ 5 billion for a rainy day fund in preparation for what he described in a letter as a time when “hell” will break out. At that time, the market was in a period of quiescence, remaining stubbornly fluctuating, partly due to investors’ propensity to buy leveraged VIX VIX,
products and treating market declines as opportunities, until trade imploded.
It is unclear what the hell looks like for Singer now, but it is apparent that he maintains less than favorable outlook on the economy and the market, even with the launch of vaccines and pandemic relief legislation creating the prospect of a recovery. the worst pandemic in more than a century is more likely.