Courtesy of Loic Schmid, head of Asset Management & CIO at GS Banque SA, here is what the hedge fund manager see as the key issues in the market right now, courtesy of his latest report, "The Good, the Bad, the Ugly"
Global stocks are pressured this morning after a plunge in the Thai stock market and currency on concerns about the king's health and Fed hikes coupled with some more bad news out of Samsung which cut profit estimates by a third, while European stocks are suffering after Swedish telecom giant Ericsson issued a profit warning, sending its shares plunging 17%.
“In the ruin of all collapsed booms is to be found the work of men who bought property at prices they knew perfectly well were fictitious, but who were willing to pay such prices simply because they knew that some still greater fool could be depended on to take the property off their hands and leave them with a profit.” - Chicago Tribune, April 1890. Nothing... ever... changes.
"We take this rather uncommonly large number of “reversals” very seriously, and given that this is the quarter’s end we’d not be at all surprised to see this selling cascade today and become very serious indeed."