Wall Street gurus get the worst and already speak of “tragedy”

the gurus of wall street most followed by investors warn that the market is not only experiencing a convulsive moment and with many uncertainties, but that the worst case scenario is yet to come. The most reputable investors lead by example, increase liquidity and modify their portfolios to face the situation

“A superbubble is about to burst, while investors seem to be re-entering the market just before a possible tragedy,” he recently noted. Jeremy Granthamco-founder and president of the investment firm Grantham, Mayo & van Otterloo (omg). The legendary 83-year-old investor was clear in a recent article: “Good luck! we’ll all need it”. The head of OMG, with some 100,000 million dollars in assets under management, believes that the US stock market “is still very expensive” because “between Covid-19, the war in Europe, the food and energy crisis and the fiscal adjustment , the outlook is much bleaker than could have been anticipated in January.”

ray daliothe founder of Bridgewater Associates, the world’s largest hedge fund with more than 150,000 million dollars, decided to close the semester with an increase of $9 billion short on European stocks. Now, the fund’s co-chief investment officer, Greg Jensen, notes that asset markets “will fall another 20% to 25% from current levels.” Dalio’s team considers that there has been a “supply shock, in addition to an already excessive demand, increasing the risk of stagflation to give rise to market conditions not seen since the 1970s (when the fund was founded).”

the guru Jim Rogersone of the best performing managers of all time and co-founder of Quantum Fund with george soros, commented this summer that it was on the verge of “the worst bear market of our lives”. The now manager of TrueValue look at two assets: “Silver and agriculture are probably the least dangerous things for the next two or three years. Agriculture, for example, unless we stop wearing clothes and eating, it will improve. If you really love her go and get a farm and you’ll get very, very, very rich”.

The ‘Oracle of Omaha‘, Warren Buffet91, despite being optimistic about equities, went from buying shares worth 41,000 million dollars during the first quarter of the year to investing only 3,800 million euros from April to June because, as he commented at the annual conference of investors in your company, Berkshire Hathaway, do not see good opportunities in the market. Thus, liquidity prevails with 144,000 million dollars in cash and most of the investment is on Wall Street.

michael burythe visionary of the ‘subprime’ crisis and one of the few managers who acted against the general trend in the mortgage market, has given maximum priority to liquidity for his fund Scion AM. The fund has a assets of about 220,000 million dollars and only had 62,000 million invested at the end of the semester. Burry made the decision to sell all of his Wall Street holdings and focus his Big Ten bets on Asia, primarily Japan.

The protagonist of the book and the film’The big short‘ (‘the big bet‘ in Spanish) shared on Twitter a post stating that “the nonsense” had returned to the markets. The tweet was soon deleted, something Burry does regularly.

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Wall Street gurus get the worst and already speak of “tragedy”