Why are so many “names” on Wall Street coming out publicly to say the end is neigh?
As hedge funds filed their second quarter holdings with the SEC, the funds have 45 days to file so that is why it is news now, many like Carl Icahn are saying that the stock is market is overvalued and that a day of reckoning is coming soon.
These big investors are saying they are hedging against the crash, which they don’t have to disclose, in gold and other alternative investments.
Mind you they are not moving out of stocks, they just have taken out insurance against a downturn.
There’s just no way to back away from the free money that has been supporting equities for the past three years. And since the Fed cannot raise rates this year — for a myriad of reasons I have written about recently including the Bank of England’s rate cut last month — there’s little reason to pull out of stocks now.
Granted I may be more apprehensive come the middle of September, but right now the profits seem easy.