European and American stock markets face retaliatory rebound hedge fund tycoons are idling more

category:Finance
 European and American stock markets face retaliatory rebound hedge fund tycoons are idling more


The reporter of the daily economic news found that, in fact, since Monday, there have been many American hedge fund tycoons calling for bottom copying, even directly pointing out the stocks they are increasing or buying. For example, Bill Miller, a 70 year old legendary investor, announced last week that todays market climate is one of the best buying opportunities of his life. Its a great opportunity, he said bluntly

The industry believes that the market has improved

David Tepper, the hedge fund boss and founder of Appaloosa, said in a media interview on Monday that he was cautiously buying some stocks, especially technology stocks, as the market fell sharply. Mr. Tepper said he was increasing positions in Amazon, Googles parent company, alphabet, Alibaba and chip maker Meguiar technology, as well as some healthcare stocks.

Despite the increase in positions in some stocks, Mr Tepper doesnt think the market has bottomed out. He predicted that with the development of public health events and economic shocks, U.S. stocks may fall another 10% to 15%. Only after Congress passed the fiscal stimulus policy can the market reach the bottom.

In addition to Mr. Tepper, bill ackman, chief executive of Pershing square, a well-known hedge fund, expressed optimism about the market on Monday, declaring that he had closed all short positions and bet 100% long on market recovery. Previously, he said, hell is coming.. Ackerman reportedly bought a $2.5 billion stock in the 10 days to Monday.

Mr. Ackermann said his hedge fund had spent the money on several companies in its portfolio in the 10 to 12 days to Monday, including Lowes, Hilton Worldwide Holdings Inc. and Berkshire Hathaway Inc.

Some analysts say caution is still needed

Although so many well-known hedge fund managers and investment tycoons have said that it is a good opportunity to buy from the bottom and even pointed out the target of their positions or increase, some analysts of investment banks and institutions have said that they need to be cautious now. For example, Scott minerd, Guggenheims chief investment officer, has not been optimistic about the market in recent weeks. In fact, he has repeatedly hint at the bubble and risk of corporate bonds since last month, and cautioned that we have reached the tipping point, and the coronavirus will pierce all bubbles. Four weeks later, his actions and opinions proved to be correct.

On March 23, Guggenheim pointed out in his report to investors that the market is in the process of large-scale deleveraging. Although the Federal Reserve has taken a series of measures to alleviate the liquidity problem, the market is still not out of the dilemma. Companies that do not meet the BBB standard will face a downgrade; the corporate bond and asset securitization market has not been cleared, and now is not a good time to intervene and actively buy.

Goldman Sachs pointed out that the reason why the market bottomed out in a crisis is the reduction of tail risk. The core idea is that the stock market usually repairs itself before the economy really recovers. Goldman Sachs believes that from a more macro perspective, there are several factors that will help to limit the current uncertainties: 1. The number of cases of virus infection in the United States and Europe has begun to grow steadily, and the growth curve has flattened; 2. The predictability of the depth and duration of economic disruption; 3. Global and sufficient economic stimulus; 4. The relief of financing and liquidity pressure ; 5. Major assets are seriously undervalued and positions are reduced. Sean Darby, global equity strategist at Jeffrey, wrote in a report to the daily economic news: despite political controversy, the Federal Reserve has been actively expanding its monetary policy toolkit, and a larger US fiscal plan is in the pipeline. Many of our risk indicators are peaking, only credit spreads are underperforming, and conventional market indicators suggest that US stocks are approaching lows. As we wrote in our report the day before yesterday, the huge margin call magnified the risk of economic spillover from the Saudi and Russian oil disputes and the outbreak of the new coronavirus. But the end of the current downward cycle lies not only in the explosive selling, but also in the easing of market sentiment. Source: editor in charge of daily economic news: Yang bin_nf4368

Goldman Sachs pointed out that the reason why the market bottomed out in a crisis is the reduction of tail risk. The core idea is that the stock market usually repairs itself before the economy really recovers. Goldman Sachs believes that from a more macro perspective, there are several factors that will help to limit the current uncertainties: 1. The number of cases of virus infection in the United States and Europe has begun to grow steadily, and the growth curve has flattened; 2. The predictability of the depth and duration of economic disruption; 3. Global and sufficient economic stimulus; 4. The relief of financing and liquidity pressure ; 5. Major assets are seriously undervalued and positions are reduced.

Sean Darby, global equity strategist at Jeffrey, wrote in a report to the daily economic news: despite political controversy, the Federal Reserve has been actively expanding its monetary policy toolkit, and a larger US fiscal plan is in the pipeline. Many of our risk indicators are peaking, only credit spreads are underperforming, and conventional market indicators suggest that US stocks are approaching lows. As we wrote in our report the day before yesterday, the huge margin call magnified the risk of economic spillover from the Saudi and Russian oil disputes and the outbreak of the new coronavirus. But the end of the current downward cycle lies not only in the explosive selling, but also in the easing of market sentiment.