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“We think hindsight will show that the champion of head butt madness in the US stock market is the period playing out right now.
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It was billionaire Paul Singer of Elliott Management who suggests the stock market has all but surged forward, in a Jan. 28 letter to clients, as Bloomberg reported on Friday.
Stocks capped a murderous week on Friday with steep losses as interest rates took a slow course and then suddenly rose, investors also worried about high valuations in everything, even stocks, which were increased by investors massing on Reddit, in bonds. , which may be faced with an estimate of high inflation expectations.
Long-term US government bonds posted their biggest monthly yield gain since 2016, meaning that the prices for betting on risk-free fixed income were hammered. And investors fear that the Dow Jones Industrial Average DJIA,
the S&P 500 SPX index,
and the technology-based Nasdaq Composite COMP,
facing a tough road, as higher credit rates make speculative stocks less attractive.
Either way, Singer believes the market is down and warns that betting on BTCUSD bitcoin,
and highly regarded companies like electric vehicle maker Tesla Inc. TSLA,
defended in his opinion by a host of investors, he and his team at Elliott will ultimately say, “We told you.”
Bloomberg reported that Elliott Management, which had prepared for the pandemic stock market crash much earlier than other investors, was making money every month of 2020, even during the carnage in March. Stock indexes hit their lowest for the year on the 23rd of this month.
Elliott, which manages more than $ 40 billion, has posted annualized gains of around 13% in 44 years, beating the S&P 500 index. Singer’s net worth, meanwhile, stands at $ 3.6 billion. dollars, according to Forbes.
Even before the advent of the coronavirus-transmitted disease COVID-19, Singer was bracing for a sharp decline in the market. In 2017, he raised $ 5 billion for a rainy days fund in preparation for what he described in a letter as a time when “all hell” breaks loose. At the time, the market was in a period of rest, remaining stubbornly positive, in part due to the propensity of investors to buy leveraged VIX VIX,
products and treat market declines as opportunities, until that trade implodes.
It’s unclear what the hell looks like for Singer now, but it is evident that he maintains a less than favorable outlook for the economy and the market, even as vaccine deployments and pandemic relief legislation hold the prospect of a solid recovery from the worst pandemic in more than a century.
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