The SMH blog has some nice quotes today from bearish hedgies:
…one of the world’s top bond fund managers, Doubleline Capital founder Jeff Gundlach, reckons we could be seeing one of the biggest short scrambles of all time – which means rates will fall further and further undermine the US dollar.
…“Speculation in the market on shorting Treasuries was very high,” Gundlach said. “If for some reason someone has to cover these shorts, you could actually see the low yields of 2012 get taken out.
…there is good reason to be cautious in the current market, Rivkin global investment manager Tim Radford says, adding there is a growing well known list of why equities could go lower over the next six to twelve months. He sums it up in five:
- Market is overvalued, particularly tech stocks
- No economic growth, risk of deflation
- End to Fed stimulus
- Highly levered market
- China slowdown
It is a worrying list. The one counter-weight is the Yellen put.
