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SocGen Reiterates Cash Call, Says "Markets Will Stay Volatile"
A week ago, the arrival of ATM lines and capital controls in Greece combined with the bursting of Beijing’s margin-fueled equity bubble plunged financial markets into turmoil and reduced traders and central bankers alike to deer in headlights.
The situation has not changed.
In fact, Sunday’s Greferendum “no” vote and the fact that the SHCOMP only managed a 2% gain after opening 8% higher on the heels of the PBoC’s move to “cross the Rubicon” means today is a lot like last Monday, only deer-in-headlights-er-er.
As such, it comes as no surprise that Soc Gen's Global Asset Allocation Team, who last week advised clients to “raise cash,” is out reiterating the flight to safety call.
* * *
Of certainties in an uncertain world. Stay with cash for now
Of the poor use of polling companies to anticipate elections results... So, a NO vote. Greek voters expressed themselves clearly, with a 61% majority in favour of something else, when asked to vote on a solution for a better future for Greece. Again, like with the Scottish referendum and the UK general election, the polling companies’ predictions have proved wrong and, until the last minute, markets continued to believe the vote would be extremely close based on the latest surveys. If listed anywhere, one should sell polling companies as they are of little use – something to remember for the UK referendum in a while.
A NO vote, but for what exactly?
Implode, or ask for a new round of negotiations? If an overdue Greek debt restructuring happens, it must come alongside another round of structural reforms, which could help ensure the sustainability of future debt repayments. Mrs Lagarde from the IMF has suggested doubling the duration of the sovereign debt, already one of the longest in the world. The critical date is the 20 July deadline for debt repayment to the ECB: policy makers will need to have found a solution by then otherwise Greek risk will become substantially higher.
Eurozone assets are obviously the most exposed– we are in a risk-off period, so we reiterate the need to have cash in portfolios. The US dollar and US Treasuries are the safest assets in our view. Markets were expecting a Yes vote, so they will be disappointed. As we wrote last week, we don't believe they will panic as policy makers have learned from past errors and continue to show the strong coordination needed to respond to what is, without doubt, a new chapter in the European crisis.
For now, we confirm our view of last week that markets will stay volatile for a while and that one must be protected from this unknown.
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Volatile? How about CRASH?
Call it what it is dickhead.
Cash & Treasuries? Bwhahahahahahahah...More from the mouths of damn CROOKS!
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Nobody is risk off in this world. Thank your bankers and governments.
"The US dollar and US Treasuries are the safest assets in our view."
Sure, the cleanest dirty oil and gas soaked rag in the burlap sack next to the fireplace.
Well, now you know what they are trying to dump.
Exactly, fishing for more suckers...
What is sad is how many people take their advice along with other subsidaries of the squid. People never learn. Thats why markets crash in cycles. You have to erase the bad memories and what was learned. It is one of the reasons I like ZH and its members. A constant reminder what has happened and will again.
Dollar seems awfully high right now. When anything is at its highest it's time to Run Away!
Go buy the stuff at lows.
Liked the picture of the deer in headlights. Best reason to click on the article headline IMHO.
Uncertain markets? That's unacceptable! For the .01% bankster ruling elite market riggers anyway.....fuckers might lose a dime.
When did Prechter start working for Soc Gen? :)
In turbulent times I always buy currencies that are up 25% in less than a year and debt in that currency even when it is at all time low rates - and it is made more attractive by $18 trillion in debt, huge future liabilities, moral decay, and a political system that is controlled by big money.
Wait - maybe gold and silver would be better.
The US dollar and Treasuries beat down to 2.x providiing - real ROR are the safe Places? LOL cancel my subscription boys.
You are going to have to think more creatively outside the box to survive this intact. Land, Paintings, collectibles, pms, cattle, diamonds, buildings, antique muscle cars, truckloads of scrap copper... god the list is endless.
You count on your paper promise and Ill do it my way.
There is no "profit" for the skimmers in a stable "market"...
Ow, my balls!
The US dollar and US Treasuries are the safest assets in our view
Laurence Kotlikoff: U S Treasury Bonds One of the Riskiest Securities in the World, Financial System Will Collapse Just a Matter of WhenWhere can you get a safe investment? Boston University Economics Professor Laurence Kotlikoff says, forget U.S. Treasury bonds. “I think they are one of the riskiest securities in the world because interest rates are likely to go up. I think the Fed is going to have to keep printing money because Congress isn’t paying our bills, and that’s going to lead to inflation eventually. So, I think long term Treasuries are extremely risky and they can drop 5%, 10% or 20% overnight
http://investmentwatchblog.com/laurence-kotlikoff-u-s-treasury-bonds-one...
The REAL banksters are secretly overjoyed. Unpaid bonds means they get legal title to whatever backed the bonds they bought with the money they created out of nothing.
TPTB were expecting YES to win. They were expecting the one-way cult to be irreversible.
Then there's reality.
"Of the poor use of polling companies to anticipate elections results..."
As if anyone still need more proof MSM polls are always pre-determined with "what we want to see" results.
cash my ass. it's all gubbermint guaranteed one way or another. all of it. guaranteed. by the gubbermint. that's why the funds buy so much garbage. without risk of loss the market is permanently broken.
They don't actually mean cash in your physical possession (i.e. outside of their control), they mean a "cash equivalent", "synthetic cash" or "money market fund" inside an account that you have with them You could not withdraw it without a big fight with / guilt trip from your broker. You would be seriously questioned or even ridiculed for asking for your own money.
Get it now before it's gone.
PM's are bipolar at the moment...
PMs will remain asleep until there is blood in the streets and we are not far off......
No shit...just look at Citigroup's exploding PM derviative position...something BIG is up!
The new "for now" safe haven I believe is LEAD. Different types if possible especially 22LR as it is now dwindling in supply as we speak. Even if you don't own any firearms it can be bartered for anything - more so than "precious" metals if things do a "Greg Louganis".
luckygunner.com for all your "other" needs.
Just fuck it all. July 20th will become August 20th, then end of the year, then the end of 2020, etc. No deadlines ever seem to actually be meaningful in all this horseshit sovereign debt payments.