There are parallels there, if you know what to look for.
Posted on 08/10/2017 8:12:49 AM PDT by SkyPilot
By now, all investors should know the research about the follies of market timing, MarketWatch reports.
But similarly, all investors should admit that a quest for outperformance by stock picking and active management will never end — particularly given that 2017 shows more than half of active funds are beating their benchmarks for the first time since before the Great Recession.
So it’s worth noting that a host of big-name billionaire investors are pretty concerned about current market conditions.
Yes, there are tremendous benefits to passive, low-risk, long-term investing strategies. And obviously, some of the “best” investors on Wall Street often get things painfully wrong.
But when some of the biggest and most respected hedge funds are pumping the brakes as the Dow Jones Industrial Average DJIA, and the S&P 500 have hit new all-time highs this week (and the Nasdaq Composite isn’t far off) … well, it seems plain irresponsible to simply write that off.
Here are what seven of Wall Street’s most iconic investors have to say about the market and the potential for a correction in the next several months.
Jeff Gundlach advises “moving toward the exits”: DoubleLine Capital CEO and bond guru Gundlach is reducing his positions in junk bonds, emerging market debt and other lower-quality investments on a fear that investor sentiment may roll over in the near future with painful effects. That probably won’t manifest in a huge drop over a short period, Gundlach predicted, but it’s wise to prepare nevertheless. “If you’re waiting for the catalyst to show itself, you’re going to be selling at a lower price,” he told Bloomberg recently, instead recommending investors begin “moving toward the exits.”
Carl Icahn warns stocks are overvalued...
(Excerpt) Read more at fnlondon.com ...
There are parallels there, if you know what to look for.
The same people that say this are in the markets. They just want to short them.
The Big Short: fascinating film.
How much of this is fodder for the AI traders?
Yessir...that's exactly what is going on. It's too hard to make money the honest way.
We watched Senate Majority Leader Harry Reid Short a Bank during the beginning of His and Nan’s reign of terror over Congress and the market crash of 2007.
Great movie. Better book.
It doesn’t take any talent to say a correction is coming. A lot of the current bubble is not based in sustainable assets but the affects of quantitative easing.
When it happens, Trump is going to get the blame (which may be why they are eager to see it happen) but the markets were supposed to crater once Obama and his Legacy left office and, instead, it has soared while the economy has roared. But, at some point, it has to give back the false gains under Obama and QE. Perhaps the Wizards of Smart are holding back until the 2018 elections so they can get more political mileage out of financial panic.
translation: The Deep State is planning to tank the market as part of Operation Scumlord to take down Trump.
It was/is a reprehensible financial practice that will need to be reconciled.
Even as the market has responded to the Trump presidency, you could feel the pall of QE waiting in the wings.
I don't think it's going to be pretty.
Are they still selling derivatives based on the bundling of risky mortgages? I saw the "Big Short" as a movie, in addition to reading the book. I don't believe this practice is still happening, nor anything close. But I'm open to hearing more evidence.
If congress would get off it’s ass and pass tax reform it would head this bubble off. Businesses were anticipating a favorable reduction in the corporate tax rate.
However, all this QE shit of the past 7 years has flooded the market with easy cash.
One would think...but Trump's policies seem to be replacing simulated "growth" from QE, and replacing it with genuine market growth by nurturing a business-first environment. He probably has to work twice as hard to offset the QE policies, but I'd settle for returning the markets to a less government-driven state.
Yep
Inflation was down a bit today because of oil. Record low oil is preventing run-away inflation, which is preventing run away interest rates, which is preventing radical shifts to bonds which means stocks will correct in normal patterns but not radically.
An outside crisis will change things, as always, and North Korean nuclear threats could be that crisis.
4th seal?
One of the Democrat-Enemedia-Complex memes being promoted during the last week has been a steady stream of articles insinuating that the stock market is due for a big crash as a means to undermine the terrifying poll results regarding the historic optimism people are expressing about our economic future, as well as hopefully precipitating said crash.
There’s been an outpouring of articles like this one from the fake stream media during the past week. The sky is falling, uh, I mean the stock market is falling, appears
to be one of the Democrat-Enemedia-Complex memes being promoted during the last week as there has been a steady stream of articles like this one insinuating that the stock
market is due for a big crash, thereby trying to undermine the terrifying poll results regarding the historic optimism people are expressing about our economic future under President Trump, as well as hopefully actually precipitating said crash.
Yes, if you have enough money you can buy “shorts” which amounts to insurance if low expectations are realized. It is a false premise to suggest because of that the markets are not over valued and THE ONLY purpose of suggesting is is because you’ve been fortunate enough to take out some insurance, should you be proven right.
Go ahead an keep holding.
My NVIDIA stock sure went south today.
Great earnings report again but that punk in North Korea stop the stock going way up. The other dozen stocks I view all showed red so I know the stocks will held back north by the end of the week.
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