Hedge fund Elliott warns of more pain to come after 2022 market rout | Financial Times
Prominent asset manager says ‘hyperinflation’ could spark one of the worst crises since the second world war
✒ A few points in the letter by Elliott Management worth noting:
- “An ‘extraordinary’ set of financial extremes that come as the era of cheap money draws to a close made possible a set of outcomes that would be at or beyond the boundaries of the entire post-WWII period”
- “Investors should not assume they have ‘seen everything’ just because they have experienced financial crises such as the 1970s bear market and oil price shock, the 1987 market crash, the dotcom bust or the 2008 financial crisis”
- “The world is ‘on the path to hyperinflation’, which could lead to ‘global societal collapse and civil or international strife’. While such an outcome is not certain, this is currently the direction that the world was headed”
- “There are so many ‘frightening and seriously negative possibilities’ that it is hard not to think that ‘a seriously adverse unwind of the everything bubble’ is coming”
- “The idea that ‘we will not panic because we have seen this before’ does not comport with the current facts”