$40 billion hedge fund Elliott Management is being very bearish saying stocks could well fall another 40% from their current levels before bottoming.

via benzinga

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New York-based hedge fund founder and CEO Paul Singer believes that amid the COVID-19 outburst, stocks across the world might see a value erosion from its February high levels.

What Happened

“A 50% or deeper decline from the February peak levels might be the ultimate path of global stock markets”, CNBC reported as Elliott said in a letter to its clients.

U.S. Benchmark Index S&P 500 reversed its losing streak and recorded a surge of 27.7% (as of Apr 16) in the past four weeks. On Mar 23, the index had stumbled to its 52-week low of 2,191.86 from its 52-week high levels recorded on Feb 19.

With world economies struggling to scale out of the recession caused by the coronavirus outbreak, gold and credit investments are believed to be safe-haven investments. Gold price is currently at $1,709.55 per ounce.

 

 

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