cahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Plunge … “The stock market is at an all-time, but economic activity is not at an all-time,” explains billionaire investor Sam Zell to CNBC this morning, adding that, “every company that’s missed has missed on the revenue side, which is a reflection that there’s a demand issue; and when you got a demand issue it’s hard to imagine the stock market at an all-time high.” Zell said he is being very cautious adding to stocks and cutting some positions because “I don’t remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people’s thinking.” – ZeroHedge
Dominant Social Theme: Something is going to happen in the fall … but what?
Free-Market Analysis: In the other article in today’s issue, we took a look at China’s increasingly wretched economic performance in terms of its upcoming stock market impact.
You’ll see that our view takes into account China’s huge size, which seems to preclude a rapid public unraveling, especially since, in our view, that unraveling has been taking place for at least four years now without having an impact commensurate to its reality.
The media doesn’t cover such things, for the most part; the Chinese government itself will go to any lengths to downplay the current unrolling disaster; the Chinese central bank will print any amount of money (or so it seems) to continue to monetize China’s failing industrial and banking base.
And so China indeed faces a kind of generalized bankruptcy, but there is no reason to think the ramifications will play out this fall just because they exist. They’ve existed a long time and China still staggers forward.
What’s interesting, however, as we can see from this ZeroHedge article, is that some of the US’s top investment minds are certainly expecting that SOMETHING will happen to stocks in autumn. China may or may not be the proximate trigger but there is a growing billionaire’s club with bearish sentiments.
This post was published at The Daily Bell on September 05, 2014.