Elliott Management: The world is headed for the worst crisis since WWII

Elliott Management: The world is headed for the worst crisis since WWII
Elliott Management: The world is headed for the worst crisis since WWII
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Hyperinflation just around the corner… warns Elliott Management

The world will be hit by… “hyperinflation” and possibly face the worst financial crisis since the World War IIaccording to one of the largest and most powerful hedge funds in the world, the Elliott Management, which predicts -30% fall in Wall Street’s S&P 500 index or 2,650 points.
The Florida-based firm, which was founded by billionaire Paul Singer and manages about $56 billion in assets, has warned clients of an “extremely difficult” situation, fraught with challenges for the global economy and financial markets, in during which investors will find it difficult to make money.
As pointed out, there is an “extraordinary” combination of economic extremes, which is responsible for the era of cheap money, which is coming to an end.
“The above makes possible a range of results that would be within or beyond the limits of the entire post-war period,” the fund’s analysts wrote.

“You haven’t seen it all”

“Investors should not assume that they have seen everything just because they have experienced financial crises such as the market crash of the 1970s and the oil price shock, the stock market crash of 1987, the dotcom bubble or the financial crisis of 2008, he added.
The fund issued its warning amid a dismal year for the markets, in which $28 trillion has been drained from global markets, while bonds have also fallen sharply, leaving investors without a shelter…
According to Elliott Management, the Fed is responsible for the situation, which proved to be particularly dishonest about the causes of high inflation.
It is recalled that the American policy makers spoke of temporary appreciations, which were caused by the disruptions in the supply chains, while they concealed that the root cause of the problem was the tsunami of liquidity which they channeled into the markets and into the real economy.
The world is “on the road to hyperinflation”, the fund said, which could lead to “global social collapse and civil or international strife”.
Although it is not certain that the result will be what is described, this is for now the direction in which the world has headed, he added.
So while the S&P is down 20% from its all-time highs early this year, according to Elliott Management, the markets haven’t fallen far enough yet.
“Coming downhill” is marked characteristically…
There are so many “scary and seriously negative catalysts” that it’s hard not to think “a serious adverse burst of the current superbubble” is coming, he said.
The hedge fund estimates that a 50% drop from all-time highs would be “normal” (down -30% from current levels or to 2,650 points).
The idea that “we won’t panic because we’ve seen it before is out of step with current events,” he concludes.

www.bankingnews.gr


The article is in Greek

Tags: Elliott Management world headed worst crisis WWII

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