RenTech HFT Hedge Fund Sees ‘Significant’ Risk of Correction
Here is some quotes on this forecast:
“However, with higher rates and more volatility a distinct possibility, there is a significant risk that asset prices will correct,” he said.
“While the fear of missing out may not be a concern for equity investors, increasing euphoria mixed with a bit of complacency certainly is,” he said. “Historically low levels of volatility may well have given investors a false sense of security in the nearly two years since the last market correction.”
“Who is going to buy the paper the Federal Reserve accumulated during the years of quantitative easing? If the Chinese reassess their appetite for U.S. debt, rates will have to move up to finance the projected $700 billion U.S. deficit this year,” he said.
“While we cannot know when that will happen with the current markets, we are doing our best to prepare for what may be turbulence ahead,” he wrote.
https://www.bloomberg.com/news/articles/2018-01-30/renaissance-hedge-fund-sees-significant-risk-of-correction
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