Equity 1 Group
Pushing back the frontiers of economic ignorance and restoring sound financial foundations, one family at a time.

“Market Risk Is Highest Since Before The 2008 Crisis”

BloombergInvest  |

U.S. markets are at their highest risk levels since before the 2008 financial crisis.

Image result for financial crisis images

Speaking at the Bloomberg Invest summit in New York, Bill Gross (of the recently merged Janus Henderson) who may or may not have been talking his bond book, issued a loud warning to traders saying U.S. markets are at their highest risk levels since before the 2008 financial crisis “because investors are paying a high price for the chances they’re taking.” Well, either that, or simply ignoring the possibility of all ETFs having to sell at once.

“Instead of buying low and selling high, you’re buying high and crossing your fingers,” Gross said Wednesday quoted by Bloomberg.

The rest of Gross’ complaint is familiar to long-suffering traders who have to navigate centrally-planned markets for much of the past decade: he said that central bank policies for low-and negative-interest rates are “artificially driving up asset prices while creating little growth in the real economy and punishing individual savers, banks and insurance companies.”

In other news, Gross’s fund has returned 3.1% YTD according to Bloomberg, outperforming 22% of Bloomberg peers (and underperforming 1-X that number). It has posted a total return of 5.4% since Gross took over management in October 2014 after he was ousted from PIMCO, which while modest is better than 90% of macro funds.

Advertisements

No Responses to ““Market Risk Is Highest Since Before The 2008 Crisis””

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: