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"Buy The Dip"? Europe's Biggest Asset Manager Says No, "Let Dust Settle"
02-09-2018, 06:53 AM,
#1
"Buy The Dip"? Europe's Biggest Asset Manager Says No, "Let Dust Settle"
"Buy The Dip"? Europe's Biggest Asset Manager Says No, "Let Dust Settle"

<p>The last few days have seen an unprecedented spike in news reports on <strong><em>whether it is time to "buy the dip" or not.</em></strong></p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-02-08_7-04-40.jpg?itok=vwSc_zUm" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_7-04-40.jpg?itok=vwSc_zUm"><img data-entity-type="file" data-entity-uuid="e69327a2-7b87-4614-971a-a08899138343" data-responsive-image-style="inline_images" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-02-08_7-04-40.jpg?itok=vwSc_zUm 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_7-04-40.jpg" alt="" typeof="foaf:Image" /></a></p>

<p><a href="https://www.bloomberg.com/news/articles/2017-10-16/a-crazy-stock-market-is-punishing-sellers"><em>h/t @DaniBurgr</em></a></p>

<p>But while CNBC "Markets In Turmoil" special was all-in promoting this as nothing but a "health pullback" and lone-wolf volatility event, Europe's largest asset manager is less optimistic.</p>

<blockquote>
<p>Raphael Sobotka, who helps manage 45 billion euros ($56 billion) in invested assets at Amundi, warns that <strong>while the latest pullback should wipe off some of the recent exuberance in equity markets, investors need to let the dust settle first on this "volatility shock."</strong></p>
</blockquote>

<p>As Bloomberg reports, Sobotka, who heads the flexible, risk premia & retirement solutions unit at Amundi, said in an interview.</p>

<blockquote>
<p><strong>“Tactically, we had been reducing our exposure to equities since December, and we further sold stocks over the past week,” </strong></p>

<p>“<strong>The equity exposure of our flagship fund, Amundi Patrimoine, is now 26 percent,</strong> down from 35 percent at the market peak in late January, and 40 percent at the end of last year.”</p>
</blockquote>

<p>U.S. stock valuations have fallen back, Sobotka said, but...</p>

<blockquote>
<p><em><strong>"...the market isn’t cheap yet, and given that rates will continue to rise, the pressure on equity valuation ratios can continue to increase from here.”</strong></em></p>
</blockquote>

<p>So far, US equities retraced around 50% of the losses before crashing yesterday...</p>

<p><a data-image-external-href="" data-image-href="/sites/default/files/inline-images/2018-02-08_13-00-05_0.jpg?itok=CsIOR9ik" data-link-option="0" href="https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_13-00-05_0.jpg?itok=CsIOR9ik"><img data-entity-type="file" data-entity-uuid="7a217303-6449-4b8e-a9fd-06b9e34b3d5b" data-responsive-image-style="inline_images" srcset="https://www.zerohedge.com/sites/default/files/styles/inline_image_desktop/public/inline-images/2018-02-08_13-00-05_0.jpg?itok=CsIOR9ik 1x" src="https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_13-00-05_0.jpg" alt="" typeof="foaf:Image" /></a></p><img src="http://feeds.feedburner.com/~r/zerohedge/feed/~4/fS8Bu_CgFEw" height="1" width="1" alt=""/>


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