Market Review

Leading US financiers shared their vision of the future of markets

Major US financiers predicted the future of global markets in a commentary to The Wall Street Journal. Many of them agree that the volatility in the markets is not over yet.

So, the founder and chairman of the board of directors of Research Affiliates, Rob Arnott, is sure that investors should wait for the bottom of the market before purchasing assets. According to him, the markets have not yet reached their lows, while the value of the S & P 500 is now significantly higher than during the 2007-2009 crisis.

The former head of Goldman Sachs (NYSE:GS) Lloyd Blankfein believes that the prospects for the markets are not so terrible. He named several events from the past that were “no less scary”, such as the Cuban Missile Crisis of 1962.

“There is so much bad news that people underestimate the fact that there is some credible good news,” Blankfein said.

At the same time, Paul Britton, CEO of Capstone Investment Advisors, advised to prepare for new fluctuations in the markets. According to the analyst, rising rates will continue to create turbulence. He recalled that even ten-year US Treasury bonds, which are usually considered ultra-safe, have become more volatile.

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Britton added that there is now a structural shift that hasn’t happened in decades.

Jeremy Grantham, co-founder of the investment company Grantham Mayo Van Otterloo & Co, meanwhile says that a superbubble has formed in the market, and it will burst soon. In this situation, the average investor, according to Grantham, is better off turning to cash.

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