Homepage / Investment / We’re seeing the greatest asset inflation bubble in 20 years, fund manager warns
How to put your medical history on your iPhone in less than 5 minutes Investment chief: Watch these two big events in 2018 Even with Netflix slowing, the market rally is likely not over Cramer: Netflix subscriber weakness debunks the 'sky's the limit' theory on the stock Netflix is looking at watch time as a new area of growth, but the competition is stiff Why Nobel laureate Richard Thaler follows Warren Buffett's advice to avoid bitcoin Rolls-Royce is developing tiny 'cockroach' robots to crawl in and fix airplane engines After Netflix plunge, Wall Street analysts forecast just tame returns ahead for the once high-flying FANG group Roku shares rise after analyst raises streaming video company's price target due to customer growth China is investing 9 times more into Europe than into North America, report reveals Amazon says US Prime Day sales 'so far bigger than ever' as glitch is resolved Netflix is on pace for its worst day in two years US lumber producers see huge opportunity, rush to expand San Francisco to consider tax on companies to help homeless Homebuilder sentiment, still high, stalls as tariffs, labor and land drive up costs Powell backs more rate hikes as economy growing 'considerably stronger' Netflix history is filled with big stock declines – like today – followed by bigger rebounds Intel shares get downgraded by Evercore ISI due to rising competition from Nvidia, AMD Petco aims to reinvent the pet store with something you can't buy online Genetic testing is coming of age, but for consumers it's buyer beware Tech 'FAANG' was the most-crowded trade in the world heading into the Netflix implosion, survey shows Netflix weak subscriber growth may indicate a 'maturity wall' that could whack the stock even more: Analyst This chart may be predicting the bull market's demise Wall Street says Netflix's stock plunge is a ‘compelling’ buying opportunity because the streaming giant ‘never misses twice’ Tesla sinks after Musk tweets, again Boeing announces new division devoted to flying taxis Stocks making the biggest move premarket: NFLX, UNH, GS, AMZN, WMT & more Deutsche Bank downgrades Netflix, but says big subscriber miss is not 'thesis changing' IBM is experimenting with a cryptocurrency that’s pegged to the US dollar North Korea and Zimbabwe: A friendship explained Virgin Galactic spinoff Orbit to launch rockets from the UK with space deal Artificial intelligence will create more jobs than it destroys? That’s what PwC says ‘Treasonous’ Trump and ‘Putin’s poodle:' Scathing headlines follow the Trump-Putin summit China’s fintech companies offer ‘enormous’ opportunity, investment manager says Trump's performance at summit with Putin was 'unprecedented,' experts say Walmart and Microsoft link up on cloud technology as they both battle Amazon European stocks seen mixed amid earnings; Fed’s Powell to address Congress How I knew I should quit my day job and run my start-up full-time: Viral website founder China's stocks have been trounced, but the trade war may ultimately be good news for those shares Billionaire tech investor Peter Thiel bets on crypto start-up Block.one Asian shares subdued open after mixed close on Wall Street; energy stocks under pressure Amazon cloud hits snags after Amazon Prime Day downtime Netflix isn't doomed by one quarter unless people start questioning the long-term investor thesis Tech stocks set to sink on Tuesday after rough evening for ‘FANG’ Netflix plummets after missing big on subscriber growth This wristband lets humans control machines with their minds The U.S. has a rocky history convincing Russia to extradite computer criminals Amazon suffers glitches at the start of Prime Day Jeff Bezos is now the richest man in modern history 'The United States has been foolish': Read Trump and Putin's full exchange Goldman Sachs recommends these 5 highly profitable companies — including Nvidia — to combat rising inflation Goldman Sachs releases 'tactical' stock picks for this earnings season Three red flags for Netflix ahead of its earnings report The bond market may be raising recession fears, but don't expect one anytime soon Cramer: Banks are 'making fortunes' but are still as hated as they were during the financial crisis Putin told Trump at summit: Russia never meddled in US election Arconic shares jump 11% on report of private equity firm's buyout interest How the Russians broke into the Democrats' email, and how it could have been avoided AMD shares rise after Stifel predicts higher profitability for chipmaker CEO of the world's largest asset manager is worried that tech shares are the only stocks doing well Despite high projections, some analysts are cautious about Netflix ahead of earnings There are 'tremendous storm clouds on the horizon' for markets: Guggenheim's executive chairman How to stick to your shopping budget on Amazon Prime Day Amazon's Prime Day is likely to drive company’s sales and share price higher Microsoft gets a boost from its biggest sales reorganization ever ZTE stock surges as USsupplier ban lifted though outlook remains uncertain Oil falls 2% below $70 as Treasury says importers may get leeway to buy Iranian crude UBS downgrades FedEx on trade war risks, upgrades UPS on domestic performance Bitcoin jumps after report suggests BlackRock is getting serious about the cryptocurrency market One of the biggest — and often costliest — retirement mistakes investors are making today The US dollar is surging, and that could spell trouble for markets Buy Cisco on the dip because the Amazon threat worries are ‘overdone’: Bank of America Strong retail sales report suggests robust economic growth in the second quarter Tech consumers should not be forced to sacrifice privacy for security Why your Amazon Prime membership may not be worth the price Netflix draws its second 'sell' rating on Wall Street as Buckingham downgrades before earnings With bank earnings underway, market watcher bets on big rally for financials Stocks making the biggest moves premarket: BLK, BAC, UPS, FDX, JBHT & more Thai rescue mission diver mulls legal action after Elon Musk calls him 'pedo guy' Trump claims US-Russia relations have ‘never been worse’ shortly before Putin meeting China will be watching and learning as Trump meets Putin Amazon Prime Day threatened by strikes at European warehouses over working conditions While Trump meets Putin, China is reaching out to Europe Trump-Putin summit could provide a ‘significant breakthrough’ on Syria, strategist says How cryptocurrency start-ups have raised over $12 billion this year via a much-hyped funding route For Asia's soccer teams to succeed, work starts off the field European markets seen higher ahead of earnings; Trump-Putin meeting in focus How start-ups are positioning healthy food to make 'a lot of business sense' 'Never underestimate human stupidity,' says historian whose fans include Bill Gates and Barack Obama China says its second-quarter GDP growth was 6.7%, meeting expectations Asian stocks poised for slightly softer open as markets await China data Elon Musk courts new controversy after tweeting, then deleting, an attack on a British cave explorer How a former eBay employee is inspiring kids to become tomorrow's problem solvers Here's what the DOJ needs to happen to win its appeal against AT&T The 2018 Hyundai Tucson is a good bargain crossover but skip the high-end model Trump suggests US and UK could strike a 'tremendous' trade deal after Brexit PlayVS wants to bring electronic sports gaming into high schools The unintentional winners of Prime Day: Amazon’s competitors Elon Musk insists he's neither Democrat nor Republican, as political contributions come under fire Amazon could make a big impact in health by helping people eat better

Investment

We’re seeing the greatest asset inflation bubble in 20 years, fund manager warns

Nobody wants to use the ‘B’ word, but a bubble is upon us, a growing number of market watchers are warning.

And it could pop sooner than many expect, Centricus Asset Management Fund Manager Ralph Jainz said Monday, joining a long list of financial players casting doubt on the strength of the market’s current bull run.

“Nobody wants to talk about this being a bubble. It’s the greatest asset inflation bubble we have seen in 20 years,” Jainz said during an appearance on CNBC’s “Squawk Box Europe.”

There is wide disagreement over whether markets have further to climb or whether we’ll see a spectacular market correction. Investing titan Mark Mobius recently predicted an impending correction of up to 30 percent, while others see no cause for concern.

But assets like tech equities have hit their highest points ever this year, and because of this, Jainz explained, traditionally defensive stocks like healthcare, pharmaceuticals and telecommunications are losing out. And these are exactly where you’d want your money to be in the event of a downturn, which Jainz believes may be just a year away.

“Dispersion levels have been rising, people have been selling the losers to buy the winners,” the fund manager said, describing stocks that were already expensive becoming more expensive — like those in tech — as buyers rush to those out-performers and in turn sell the underperformers.

“Now the underperformers are exactly the sectors you will need to protect you when the next cyclical downturn actually comes along, which is probably the case in the next 12 to 18 months.”

Tech stocks have become so expensive, according to some investors, that many believe they no longer have room to grow. Still, this isn’t a total consensus, as money keeps pouring into large-cap leaders like Netflix and Amazon, up 104 percent and 46.7 percent year-to-date, respectively.

Meanwhile, the underperformers that Jainz described — like the S&P’s telecoms and healthcare indexes — are down 11.4 percent and up a mere 3.51 percent year-to-date, respectively. Information technology is up 14.1 percent on the year.

“You normally need a generation to come along, a new generation to make the same mistake that we all did 20 years ago,” Jainz added. “And I probably won’t see another one until I retire in 20 years’ time.” But too many people, he warned, are selling off the safe sectors that could serve as a much-needed haven later down the road.

Recently, Fasanara Capital, a London-based asset management fund, predicted a full-on crash ahead, citing increasing frequency of value-at-risk shocks — or swift market corrections — as an indication of fragility for global markets. Fasanara also accurately predicted the market correction in early February, saying just two weeks before that stocks were long overdue for a re-pricing.

But many still conversely are optimistic about the markets. Credit Suisse said in a note last week that there are “clear signs that economic growth is set to accelerate across major regions in the second half of 2018, creating a favorable climate for equities and certain commodities.”

For Jainz, there is still money to be made from this disparity in sectors.

“Now, it’s that dispersion that’s at the moment probably the most interesting opportunity in the market — start putting money to work in the losers and start taking a preference in the winners, because there’s probably going to be a mean reversion in both sectors going either way over next 12 to 18 months.”

Source: Investment Cnbc
We’re seeing the greatest asset inflation bubble in 20 years, fund manager warns

Comments are closed.