© Reuters
Investing.com – Hedge fund Elliott Management has warned investors that the global economy is on track for hyperinflation and is likely heading into the worst financial crisis since World War II. Speaking of which in shape Financial Times newspaper.
The company has warned clients of an “extremely difficult” situation for the economy and markets, in which it will be difficult for investors to make money.
“Investors shouldn’t feel like they have ‘seen it all’ just because they survived previous crises like the 1970s bear market and the oil price shock, the 1987 market crash, the collapse of the stock bubble. com or the financial crisis of 2008, “the company said.
The looming crisis will be even stronger, according to Elliott Management. writes RBC. The company places much of the blame for the current economic situation on central bank policies, which have been “dishonest” about the causes of high inflation. They attributed them to post-COVID-19 post-COVID supply chain challenges, not extremely accommodative monetary policy.
At the same time, the markets have not yet fallen enough, according to Elliott Management. The fund warned clients of a further turnaround in all risky assets. He estimates that a 50% drop from the market high would be normal.
