Hedge fund predicts worst crisis since World War II
Hedge fund Elliott Management has warned investors that the global economy is on track for hyperinflation and is likely heading towards the worst financial crisis since World War II. This is reported by the Financial Times newspaper.
The company warned clients of an “extremely difficult” situation for the economy and markets, where it will be difficult for investors to make money.
“Investors should not feel like they have ‘seen it all’ just because they survived previous crises such as the 1970s bear market and the oil price shock, the 1987 market crash, the collapse of the dot-com bubble, or the 2008 financial crisis. years,” the company said.
The looming crisis will be even stronger, according to Elliott Management. The company places much of the blame for the current economic situation on the policies of central banks, which have been “dishonest” about the causes of high inflation. They attributed them to post-COVID-19 post-COVID supply chain challenges, not to ultra-loose monetary policy.
At the same time, the markets have not yet fallen strongly enough, according to Elliott Management. The fund warned clients about a further reversal in all risky assets. He estimates that a 50% decline from the market high would be normal.