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An underwhelming earnings season is winding down while stocks struggle. The sell-siders are, bluntly, panicking.
I wouldn't be surprised in the least to find many of you have heard from your advisors over the past few days – advisors with a vested interest in keeping you long the markets (and ensnared in their asset-based fee models).
I'd also bet you're being told "not to worry." I bet you're hearing a lot about companies "flush with cash" and "beating their earnings expectations."
I bet you're being told, despite the obvious signs all around us, that this market is "uniquely solid" and that "the numbers confirm it."
Have I pretty much nailed it word for word?
That's because I'm a hedge fund guy. I know the legal tricks and accounting stunts that keep CEOs and, well, hedge fund guys "well-remunerated."
I'll let you in on another secret: They're lying to you. The market is lying to you, and it's costing you plenty…
About the Author
25-year run as a hedge fund portfolio manager, family office chief investment officer, managing director and general counsel. Internationally recognized expert in credit and equity markets as well as macro risk management.
How do you calculate that the S&P 500 is up 40% since the 2007 peak? The peak was 1,565.15 x 40% = 624.86. 1,565.15 + 624.86 = 2,190.01. Didn’t it get up to 3,000? Isn’t that closer to up around 90 – 100%. Are am I off on my calculations? Thanks Jesse