Tags: market | bears | investors

Investor Cheer Lures Market Bears Out of the Woods

Tuesday, 10 Aug 2010 11:32 AM

It used to be that serious bears stayed in the darkest parts of the investing forest.

Now, they're in people's backyards.

“Clients are more receptive to hearing polar ends of an investment view,” strategist Bob Janjuah, who expects economic growth for the top developed economies to average little better than 1 percent a year over the next five years, told The New York Times.

Janjuah says he was courted by half a dozen investment banks this summer before he decided deciding to leave his post at Royal Bank of Scotland to join Nomura.

In many smart-money circles, listening to bears has become fashionable, especially now that doubts remain about the sustainability of the eurozone, concerns grow that the United States may slip back into recession and that even the Chinese growth engine may seize up, the Times reported.

Other signs that bears are being lionized include the popularity of research notes to investors written by hedge fund manager Raoul Pal. Pal’s most recent note predicted a 1930s-style depression in the United States and eventual bankruptcy for Britain.

Pal claims that 30 percent of his clientele — which includes pension and hedge funds, governments and proprietary traders at banks — are wealthy family offices with assets of more than $200 million.

“They are easily the most bearish of my subscribers because they invest in the longer term,” Pal says. “And in the longer run they see more uncertainty than ever before.”

The flight to investing safety is clearly illustrated by bond-market trends, experts say.

In fact, Bloomberg reports that U.S. investors now own more Treasuries than foreign investors for the first time since 2008.

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
It used to be that serious bears stayed in the darkest parts of the investing forest. Now, they're in people's backyards. Clients are more receptive to hearing polar ends of an investment view, strategist Bob Janjuah, who expects economic growth for the top developed...
market,bears,investors
271
2010-32-10
Tuesday, 10 Aug 2010 11:32 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved