$356 Billion Fund Manager: “Now Is The Most Treacherous Time Ever”

“Now is the most treacherous time ever”

Dangerous bubbles in plain sight

“Federal Reserve Board are just dope dealers on speed-dial.”

US GDP – according to the NY Fed – is set to grow a paltry 1.4% for the entire year. This would be the lowest growth rate since the financial crisis.

“Asset valuations are not outside of historical norms,” Fed head Janet Yellen

Fed forecasts weakest growth since 2009, can’t see bubble as central banks print record amounts, so raise rates? Clueless!

Central Bankers are rationalizing insanity in perpetuity

In practice the “biggest counterfeiting operation in history”

Signals new global monetary system, starting Monday

Will your investment strategy navigate these extraordinary circumstances?

————————————

“Now is the most treacherous time ever”

“Last week we reported that Tad Rivelle, fund manager at the $195 billion TCW Group, uttered a harsh warning, telling readers of his newsletter that “the time has come to leave the dance floor“, providing numerous examples and anecdotes as to why that is the case.

Today it was the turn of Joe Baratta, the top dealmaker at Steve Schwarzmann’s $356 billion Blackstone Group, to follow up with a comparable warning.

Speaking at the WSJ Pro Private Equity Analyst Conference in New York, Baratta said that “for any professional investor, this is the most difficult period we’ve ever experienced”, adding that “You have historically high multiples of cash flows, low yields. I’ve never seen it in my career. It’s the most treacherous moment.””

http://www.zerohedge.com/news/2016-09-27/356-billion-fund-manager-now-most-treacherous-time-ever-ive-never-seen-my-career

Dangerous bubbles in plain sight

0916evrythingbubble

“Jesse Felder published an incisive bubble finance chart over the weekend. It is yet another reminder that Janet Yellen and her merry band of money printers are oblivious to the dangerous speculation and valuation excesses that their policies have implanted throughout the financial system.

Relative to disposable income, the value of household financial assets now far exceeds the last two bubble peaks. And that has happened in an economic environment which suggests just the opposite. To wit, valuation multiples and cap rates should be falling owing the fact that the productivity and growth capacity of the US economy has been heading south ever since the turn of the century.”

http://www.zerohedge.com/news/2016-09-26/dangerous-bubbles-plain-sight

“Federal Reserve Board are just dope dealers on speed-dial.”

 

“Unfortunately, like the housing bubble and the tech bubble before it, this gleeful romp into the land of “this time it’s different” is likely to collapse in a smoldering pile of ruins. The reason is that the very things that have created this glorious rear-view landscape have been obtained by ripping prosperity from the future. By following a dogma that treats debt-financed consumption and financial speculation as a substitute for actual economic growth, policymakers have encouraged obscene valuations, extreme debt burdens, and speculative malinvestment; front-loading market returns to the point where there is little but risk on the financial horizon for the coming 10-12 years (though there will undoubtedly be excellent opportunities much sooner, at points where substantial retreats in valuations are joined by early improvements in market action). We currently estimate S&P 500 nominal total returns averaging just 1.4% annually over the coming 12-year period. The higher investors have driven market valuations, the lower prospective futurereturns have become. What looks beautiful in the rear-view mirror has been torn from the abyss that lies ahead in the windshield.”

http://www.hussmanfunds.com/wmc/wmc160926.htm

US GDP – according to the NY Fed – is set to grow a paltry 1.4% for the entire year. This would be the lowest growth rate since the financial crisis.

http://www.zerohedge.com/news/2016-09-23/ny-fed-slashes-gdp-forecast-now-sees-weakest-growth-financial-crisis

“Asset valuations are not outside of historical norms,” Fed head Janet Yellen

Cartoon of the Day: Janet In Wonderland - Yellen Madhatter.09.22.2016

Fed forecasts weakest growth since 2009, can’t see bubble, so raise rates? Clueless!

We have shown that 3 separate and very clear measures from 3 different sources, that clearly that we in a bubble of astonishing proportions. However, the Fed Chair says she can’t see it.

The Fed keep saying that the economy is on the right track for a rate rise. However, just last week  they announced a decline in growth forecast s and the NY Fed is forecasting the weakest growth since 2009.

So Central Bankers are rationalizing insanity in perpetuity

Here is a Bank Of England Governor who is about to become head of the London School of Economics!!!!

http://www.zerohedge.com/news/2016-09-28/perpetual-qe

In practice the “biggest counterfeiting operation in history”

 

Signals new global monetary system, starting Monday

 

 

Will your investment strategy navigate these extraordinary circumstances?

This entry was posted in Market Notes. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *