THE CALM BEFORE THE STORM
Q1 share buyback programs hit all-time high - World´s biggest Hedge Fund turned bearish on all assets
Read it
carefully it describes the market behaviour at its best. As already mentioned
the tax program by Trump will surely not bring the long desired effect. It only
brings more pain since companies only use the readymade advantage to make full
use of the newly buying power and hit share buyback programs to an all-time
high. However things are going completely nuts. Italian yields again show a
sharp increase following a fresh sell-off in Italian government bonds. It seems
it goes on and on and never ever something will really turn down equities, but
this is the fatality in this game. Just remember 1929/1987. As mentioned some
days ago US saving rates tumbles to zero, a repetition of the 1987 problem that
ultimately lead to the severe crash in 1987. Only a fool believes still the
market is in a good shape. The problem now is the growing lack of liquidity and
its going to get even more worse during the summer time when usually investors
stay off the market to relax. A much stronger Dollar, rising oil prices and
rising yields will surely lead to severe trouble ahead. Brazil Central Bank
already intervened in forex markets after Real routed to a two year low. And so Bridgewater, the world´s biggest Hedge
Fund, told lately it is short on all assets and reduced its net long positions
in equities.
So watch
out and make sure your positions are hedged!!
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