Steen Jakobsen, the often-bearish chief economist at Danish investment house Saxo Bank, cited several factors including growing credit loans, a widening fiscal deficit in the U.S., doubts over infrastructure spending plans and a potential trade war.
Investment chief of $250 billion firm says financial markets are on a ‘collision course for disaster’
- Guggenheim Investments’ Scott Minerd warns clients that inflation and rate hikes from the Federal Reserve will lead to the next market downturn.
- “With the huge fiscal stimulus coming online, the Federal Open Market Committee (FOMC) will feel obliged to play the role of creating economic headwinds,” the firm says.
- Guggenheim has more than $250 billion in assets under management across its fixed income, equity and alternative investment strategies, according to its website.
Global credit markets showing signs of danger
- The 12-month Libor is hovering at nearly 2.7 percent and has been rising steadily all year.
- As money bolted from the stock market late Tuesday, it flowed into the 10-year Treasury note, knocking the yield down to 2.78 percent.
- Comparing the 10-year yield to the two-year Treasury yield shows a yield curve that has flattened to 51 basis points on Tuesday, a tick above the lowest level of the year.
late cycle pic.twitter.com/WdUFAHXUSH
— Alastair Williamson (@StockBoardAsset) March 28, 2018
Printed money is the issue that has raised the market up to an unprecedented level which means the Fed is responsible for the markets demise.
— Reginald Melvin (@alsferb) March 28, 2018
— Planet Ponzi (@PlanetPonzi) March 28, 2018
h/t David Stockman