The world's biggest investors are notoriously skeptical of the stock market's bet for a quick economic recovery — and warning that the 'fantasy' rally will soon come crashing down
The gradual reopening of shuttered businesses by states — including all 50 as of last week — is boosting investors' confidence that the coronavirus-driven recession will be sharp but brief.
"The risk-reward for equity is maybe as bad as I've seen it in my career," Druckenmiller recently told the Economic Club of New York during a virtual event. He worries too many investors expect that new liquidity from the Fed will flow into the markets indefinitely following a few strong months. "If you're going to have all these people unemployed, it's hard to end up coming out of a recession until that changes," Lasry said. "It's going to be a difficult couple years."
A Goldman Sachs report on mutual fund holdings further exposed how some of these managers are expressing their views in portfolios. The net result of their allocation shifts is a reluctance to price in a brisk comeback. Instead of these characteristics, mutual funds prized stocks with balance sheets that are strong enough to weather a widespread solvency crisis.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market crash: Reliance on Fed blinding investors from 50% loss - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
How to invest $1,000 in the stock market and start building wealth today - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
Shopify stock is overpriced and won't rise further analysts warn - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web.
Read more »
'Big Short' investor Michael Burry added these 5 new stocks to his portfolio in the first quarter | Markets InsiderMichael Burry - the famed investor portrayed by Christian Bale in 'The Big Short' - added 5 new stocks to his hedge fund portfolio in the fi...
Read more »