05-18-2016, 10:32 PM
And now for some bad news..
Global fund managers have almost no faith in the latest stock market rallies around the world and have begun to fear the worst from Brexit, putting aside near record sums of money in cash as they brace for a ‘summer of shocks’.. Investors have already lost confidence in China’s economic rebound this year and are shunning British equities like the plague, fearing a financial crunch if Britain votes to leave the EU. What is puzzling is that this mood of deep alarm conflicts with clear evidence of accelerating monetary growth worldwide, usually a harbinger of better times ahead.
Global funds fear 'summer of shocks' despite boom in money growth
Having pointed out the gathering storm in VIX ETPs, raised concerns of a "reasonably high probability" of a large drop in stocks, and explained how complacently short-term risk is being priced, Goldman's portfolio strategy team have unleashed a dramatic warning. Shifting to an oveweight cash position for the next 3 months, Goldman warns "we downgrade equities to Neutral over 12 months on growth and valuation concerns. Until we see sustained earnings growth, equities do not look attractive, especially on a risk-adjusted basis."
Goldman Downgrades Stocks Over Next 12 Months Due To Risk Of Sharp Market Drop | Zero Hedge