Hedge fund manager Neal Berger is warning that the pain in the stock market isn’t over yet. However, he said that the pain won’t become evident until markets go sideways for months. “Big picture, everything is going down,” Berger said. “Price action is ultimately the bible.” His predictions come after he scored a massive gain (163% return) last year when stocks had their worst performance since 2008. As investors prepare for the worst, according to Moody’s Analytics, even if the U.S. avoids a recession in 2023, American consumers and investors could face a “slowcession” that likely won’t let up until 2024.
Business Insider/Phil Rosen
‘Everything is going down’: A hedge fund manager who returned 163% in 2022 says the stock market pain is only beginning
Veteran trader Neal Berger is betting that global assets are going to feel more pain, after scoring a massive gain last year when stocks had their worst performance since 2008.
According to a Bloomberg report, he ran Eagle’s View Capital Management as a fund of funds for 16 years before launching the Contrarian Macro Fund, which in April 2021 piled up bets on an increasingly hawkish Federal Reserve. The new fund delivered a return of about 163% in 2022.
“The reason why I started the fund was that central bank flows were going to change 180 degrees. That key difference would be a headwind on all asset prices,” he told Bloomberg. “One had to believe that the prices we saw were, to use the academic term, wackadoodle.”
Per the report, Eagle’s View has about $700 million in assets under management, and roughly $200 million in the Contrarian Macro Fund.
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Reuters via CNBC
Gold trades near 7-month peak on hopes for smaller Fed rate hikes
Gold prices extended their new year rally to jump nearly 1% and hit their highest since mid-June on Wednesday, helped by a weaker dollar and growing expectations of less aggressive rate hikes going forward.
Spot gold was last up 0.8% to $1,854.19 per ounce, hitting its highest since June 13. U.S. gold futures also gained 0.75% to $1,860.00.
The dollar index, meanwhile, slipped 0.33%, making gold less expensive for overseas investors.
There is some optimism in the market ahead of the release of minutes from the Fed’s December meeting later in the day, Kinesis Money external analyst Carlo Alberto De Casa said.
Continue reading, here.
Fortune via Yahoo Finance/Tristan Bove
The U.S. might avoid a full-out recession, but get ready for a ‘slowcession’ says one of the first economists to predict the 2008 financial crash
An economic downturn in the U.S. this year is all but guaranteed as the Federal Reserve puts the brakes on the economy and clamps down on inflation.
But while nobody knows exactly how much of a decline the country is in for, fears of a historic recession may be overblown.
Bank CEOs including J.P. Morgan Chase’s Jamie Dimon as well as top economists ranging from NYU’s Nouriel Roubini and Mohamed El-Erian, president of Queen’s College at Cambridge, have forecasted economic doom and gloom for the U.S. in the year ahead, in response to the Fed’s dramatic cycle of interest rate hikes that began last year.
Dimon has even warned about a potential economic “hurricane” while El-Erian went as far as predicting a “profound economic and financial shift” as the global economy sits on the brink of an epochal transformation.
Read the full article, here.