Goldman to Fidelity Call for Calm After Global Stock Wipeout

Weiyi Lim and Inyoung Hwang
Bloomberg
2/4/2014

…Strategists from Goldman Sachs Group Inc. to AMP Capital Investors and JPMorgan Chase & Co. are also telling clients to hang on after losses that began with currencies in Turkey and Argentina spread to developed markets. The Standard & Poor’s 500 Index slid 2.3 percent yesterday, capping its first 5 percent retreat in eight months, while Japan’s Topix index plunged 4.8 percent for its biggest decrease since June.

“We didn’t expect the U.S. would be this weak,” Kathy Matsui, chief Japan strategist for Goldman Sachs in Tokyo, said by e-mail. “Since we do not see sufficient reason to change our fundamental earnings outlook and stock prices have fallen, the market still appears attractive to us.”…

…“Some investors are schizophrenic,” Naeimi said in a phone interview. “You have started to see fear back in the market which you hadn’t seen for some time. This is good from a contrarian perspective, to remove some froth from the market, reduce complacency and gives me a buying opportunity.”

The retreat since Jan. 23 has done little to dent the $9.6 trillion of stock value that was created worldwide in 2013, when the S&P 500 advanced 30 percent and the Topix climbed 51 percent. Speculation that developed-market equities were due for a retreat has built for months, including forecasts in January from Blackstone Group LP’s Byron Wien and Nuveen Investment Inc.’s Bob Doll Jr., who both called for a 10 percent drop.

“We should keep our calm,” said Karim Bertoni, a Geneva-based strategist at de Pury Pictet Turrettini & Cie., which manages about $3.3 billion. “A 10 percent decline wouldn’t be surprising,” he said. “It’s something that happens a couple of times of year, nothing per se unusual. That’s why so far I think we are more in a classic correction than anything else.”

 

 

Read the entire article at Bloomberg.

 

Related:  15 Reasons Why Your Food Prices Are About To Start Soaring

Did you know that the U.S. state that produces the most vegetables is going through the worst drought it has ever experienced and that the size of the total U.S. cattle herd is now the smallest that it has been since 1951?

Just the other day, a CBS News article boldly declared that “food prices soar as incomes stand still“, but the truth is that this is only just the beginning.  …

 

 

“Soros Put” Hits Record As Billionaire’s Downside Hedge Rises By 154% in Q4 To $1.3 Billion

…the “Soros put”, a legacy hedge position that the 83-year old has been rolling over every quarter since 2010, just rose to a record $1.3 billion or the notional equivalent of some 7.09 million SPY-equivalent shares. Since this was an increase of 154% Q/Q this has some people concerned that the author of ‘reflexivity’ and the founder of “open societies” may be anticipating some major market downside.

 

 

Bank Of America Warns “The US Dollar Is In Trouble”

Global financial and commodity markets are warning that the US Dollar is in for a bout of trouble, warns BofAML’s Macneil Curry. Across asset classes, Curry points out that Gold was the first to make its low against the US Dollar, doing so back on Dec-15. The second market to turn against the US Dollar was US Treasuries…

 

 

Update:   George Soros More Than Doubles Net Worth During Obama Years–Now at $20 Billion

…Obama has been a boon to billionaires, and a wrecking ball of economic destruction to the once great American Middle Class.

So the next time you hear someone tell you how Obama “cares” about people, shove this fact in their face.  He only cares about repaying those who wrote the checks to put him into power in the first place.

 

 

The new class system for young Wall Street bankers.  A guide to the four tiers of young money in post-crash New York

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