Tags: jim chanos | trouble | fraud | investors

Jim Chanos: Enjoy 'Golden Age of Fraud,' Soaring Market Nearly Done

Jim Chanos: Enjoy 'Golden Age of Fraud,' Soaring Market Nearly Done
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By    |   Tuesday, 28 July 2020 08:25 AM

Investment guru Jim Chanos warns savvy investors that the seemingly endless soaring stock market is near the end.

“Trouble’s coming, I don’t know when, but it’s coming,” the short-selling legend who just cashed in a roughly $100 million winning bet recently told the Financial Times.

Chanos just earned nine-figures by shorting Wirecard ahead of its collapse, according to sources cited in the FT story.

Chanos is a famed for helping to expose some of the most famous financial frauds, including Enron, Baldwin-United and Drexel Burnham. His firm, Kynikos Associates, just celebrated its 35th anniversary.

He claimed we’re in a “golden age of fraud,” describing the current market climate as rife with euphoria, investor fear of missing out and “post-truth” politics — “a really fertile field for people to play fast and loose with the truth, and for corporate wrongdoers to get away with it for a long time,” he said.

All of this is exacerbated by lax oversight. Financial regulators and law enforcement, he says, “are the financial archaeologists — they will tell you after the company has collapsed what the problem was.”

It’s “a heady witch’s brew for trouble”.

Chanos, with $1.5 billion in assets under management, also had harsh words for Tesla.

“Elon Musk has personified the hopes and dreams of this bull market,” Chanos said, adding that Tesla has “a culture of deception” and it “burnishes its results through aggressive accounting.”

Chanos isn't alone in his market warnings.

Investment guru Ed Yardeni says the seemingly endless surging stock market is due for a pullback investors might be “delusional” to think the party will last forever.

Growth investors appear to be “punch drunk,” the president of Yardeni Research told CNBC.

“I don’t know that they’re delusional yet, but if this market just keeps going higher I’ll have to conclude that’s exactly what’s happening,” the Newsmax Finance Insider said.

“Prices have gone up at the same time that earnings expectations have gone down. They’ve only recently started to level out. So, I think the market needs consolidate, it needs to give some times for the fundamentals to show that the recovery is still there,” Yardeni said.

“The Fed just keeps filling up that punch bowl with spiked liquidity,” Yardeni said.

© 2020 Newsmax Finance. All rights reserved.


   
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Investment guru Jim Chanos warns savvy investors that the seemingly endless soaring stock market is near the end.
jim chanos, trouble, fraud, investors
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2020-25-28
Tuesday, 28 July 2020 08:25 AM
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