In a cheerless missive to investors, Paul Singer at Elliott Management warned that the bond market is broken and that once central banks lose their ability to prop it up, the crash will be big. This is a recurring bearish argument, but always popular.
Singer says now is “in many ways the most peculiar period we have faced in 39 years. … Everyone is in the dark. Experience doesn’t count for much, and extreme confidence may be fatal. … the ultimate breakdown (or series of breakdowns) from this environment is likely to be surprising, sudden, intense, and large.”
— Excerpt contributed by Jason Kelly
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| Z-val: | Paul Singer |
| Via: | Zero Hedge |
| Date: | 8/18/16 |
| Disposition: | Medium-Term Bearish |
| S&P 500 on 8/18/16: | 2187 |
| S&P 500 on 2/17/17: | 2351 |
| Change: | +7.5% |
| Judgment: | Wrong |
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