Lord Rothschild: "Share Prices Are At Unprecedented Levels, This Is Not A Time To Add Risk"

Tyler Durden's picture

One year ago, the financial world was abuzz when the bond manager of what was once the world's biggest bond fund had a dire prediction about how "all of this" will end (spoiler: not well).

Two months later, it was the turn of another financial icon - if from a vastly different legacy and pedigree - that of Rothschild Investment Trust Chairman himself, Lord Jacob Rothschild, who echoed Bill Gross with an unexpectedly gloomy warning in his 2016 half-year financial report, saying that central bankers are continuing "what is surely the greatest experiment in monetary policy in the history of the world. We are therefore in uncharted waters and it is impossible to predict the unintended consequences of very low interest rates, with some 30% of global government debt at negative yields, combined with quantitative easing on a massive scale."

His outlook was just as gloomy: "the geo-political situation has deteriorated with the UK having voted to leave the European Union, the presidential election in the US  in November is likely to be unusually fraught, while the situation in China remains opaque and the slowing down of economic growth will surely lead to problems. Conflict in the Middle East continues and is unlikely to be resolved for many years. We have already felt the consequences of this in France, Germany and the USA in terrorist attacks."

One year later, the scion of the most (in)famous name in all of finance, is back and in his latest letter to RIT Capital Partners investors,  Lord Jacob Rotschild has released what is perhaps his gloomiest outlook ever; here are the highlights:

We do not believe this is an appropriate time to add to
risk. Share prices have in many cases risen to
unprecedented levels at a time when economic growth is
by no means assured. The S&P is selling at 25 times
trailing 12 months’ earnings, compared to a long-term
average of 15
, while the adjusted Shiller price earnings
ratio, which averages profits over 10 years, is
approximately 30 times.  


The period of monetary
accommodation may well be coming to an end.
Geopolitical problems remain widespread and are proving
increasingly difficult to resolve. We therefore retain a
moderate exposure to equity markets and have
diversified our asset allocation towards equity
investments where value creation is driven by some
identifiable catalyst or which are exposed to longer-term
positive structural trends.

Furthermore, Rothschild continued the shift away from US capital markets exposure announced one year ago, noting that "we have a particular interest in investments which will benefit from the impact of new technologies, and Far Eastern markets, influenced by the growing demand from Asian consumers." What is surprising is how aggressively Rothschild has cut its allocation to US-denominated assets in just the past 6 months.

Not surprisingly, RIT's investment portfolio continues do quite well, and has now returned over 2,200% since inception

Below is a snapshot of where every hedge fund wants to end up: the Rothschild investment portfolio.

Finally, for all those wondering where the Rothschild family fortune is hiding, here is the answer.

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Chupacabra-322's picture

@ Federal,

Perfect example of:

"Hidden in Plain Sight."

Paul Kersey's picture

Are you talking about Lord Rothschild or Lord Kushner? Do the Kush, do the Kush, can you do the fandango?

JRobby's picture

Well, yes.

Let's not talk about the infamous parties.


Bubba Rum Das's picture

Hey, I'm with ya on that one Satan; as they say in the trailer park down the road:

"Well, I guess that's just the way she goes, boy's...!"

veritas semper vinces's picture

The head of the beast has spoken.

In Revelations ,the beast on which the Mother of all Harlots rides,has seven heads. There are many interpretations of this fact. I like the one considering the heads as the seven heads on the dollar bill(1,2,5,10,20,50 and 100 $ bill).They are real heads and the beast is obviously the Financial system.

The brain is Rothschild

PhilofOz's picture

It's supposedly extremely offensive to touch royalty in Britain, yet a picture tells a thousand words. Rothschild poking the future king of England and the commonwealth in the chest while Charlie looks at him like a naughty boy being chastised! Who runs this planet is right there to see!


veritas semper vinces's picture

The Queen can not enter the City of London without a permission from it.

Sugarcandy Mountain's picture

Jug-ears is never going to be king. Utterly despised throughout the UK. I think Queen Lizard would prefer to skip over that mistake in favour of the much more popular William. The very continuation of her family may very well depend upon it.

algol_dog's picture

Love it when racist's quote scripture written by the Jewish Apostles.

Justin Case's picture

The $7 trillion dollar man.

veritas semper vinces's picture

Some say 500 T. He is never,ever mentioned among the rich men  in the world.

LibertarianMenace's picture

Lately he has been getting honourable mention in the galactic circulars, however.

Got The Wrong No's picture

As long as this Lord piece of shit has access to babies to sacrifice, he will continue to just look dead. Same with Soros, Bill and Hillary. 

The Cooler King's picture

Given a choice, I'd Take BEETLEJOOZEZ makeup artist & hair stylist.

Lumberjack's picture

Looks like he's about to meet the ZH motto...

Arnold's picture

My good old Uncle Jacob:

Nix on the death legacy you intend to leave me.
I'm well beyond my prime years to become the most money evil man in the world.

Georgie Soros might be a better fit, but his children are drug addicts, as are many of yours.


JRobby's picture

Put a bag over his head and tie it off.

peddling-fiction's picture

You would be reading (((him))) right.

Phoenix global currency based on IMF SDR´s coming right up in 2018.

But first some civil and not so civil strife.

c2nnib2l's picture

Hard to tell when but In investments, better to sell out one month too early than one day too late

HRClinton's picture

Stop making sense. 

Same as it ever was.

LindseyNarratesWordress's picture

One of THE greatest performances, of one of THE greatest songs, ever produced:  http://youtu.be/TGofoH9RDEA


It, honestly-to-God, really is "the same as it ever was".



detached.amusement's picture

the techs behind the board need to be beaten with a rubber hose, I can still hear the singer's voice when the backups come into the mix, why can I still hear him, its not like he's the lead singer or anything

oh wait



Xredsx's picture

It doesn't matter where you put your wealth, they have won and the governments owe them trillions on our behalf. It is their reset and they may only set gold, lets say $100. It may get ugly just so the government will fall. But as long as your family have a roof over their heads and food on the table. Honestly, the poor will celebrate this. 

LindseyNarratesWordress's picture

I am ready for whatever (((they))) have planned.





Galahad Threepwood's picture

The Grand Solar Minimum?

The pole shift?

It's gonna be tough

TradingTroll's picture

The poor will only celebrate in the short term

Xredsx's picture

After conquering them, by making them believe that they are rich and free will get them to fall in love with their new rule makers.

Sugarcandy Mountain's picture

New rule makers?

Meet the new boss, same as the old.

indygo55's picture

Gold and silver and all metals really represent the concentrated labor and capitol. Mining is a dirty and expensive business, especially for the precious metals. The value will always be there. They can't create it out of thin air like fiat so they pretend to demonize it so you and I don't go there. Most have bought the con. A tiny percentage didn't and those with the possession will benefit. 

Xredsx's picture

So that gold for cash rush was a pre planned con?

MaxThrust's picture

a comment from Lord Vader at such a time just after Bannon has departed the white house, bodes ill for the Trump Presidency. Exactly what the Deepstate wanted.

The DS have already neuterred Trump with Bannons departure, now they will destroy him with a collapse of the Stock Market.

gadzooks's picture

Bla Bla Bla , we want to own everything , Bla Bla Bla

Eyes Opened's picture

A debt is only an asset if the debtor is willing or able to pay it, otherwise it is worthless....

Putrid_Scum's picture

Hey Rothschild. This is where I hang out. Do people still read the Financial Times?

No sympathy here for your predicament. I doubt the US will survive, don't you? Yes, it's best to disinvest Putrid.


Son of Captain Nemo's picture



adamas's picture

You yanks are only jealous because you thought you'd won the war of independence ????????????????ROTFL... Our senior banking family have controlled every fart in the US since they rolled over President Adams... 1913 was just the coup de grace... the East was controlled by their equally auspicious brethren the Sassoon family,  purveyors of opium and founders of HSBC, Hong Kong etc etc etc..

Great Britain will survive the coming levelling , the US will not , it was designed thus.

Chupacabra-322's picture

"Great Britain will survive the coming levelling , the US will not , it was designed thus."

You pussies don't have enough Guns or Balls.

adamas's picture

We don't need guns , we use yours.. 

Ima anal sphincter's picture

We should of let Hitler take your ass. The English are a bunch of gutless pussies. FY!!

adamas's picture

Talking out of your anal sphincter old boy. Research history. The US has not won a single conflict without British participation since the Spanish war of 1801,  ohh you did beat Grenada 1983 against 250 black kids with sticks and stones... name me one other ... you can't because unfortunately America lacks a killer punch , big slobbering bully,  but if anyone smacks their nose they run home to mommy

indygo55's picture

Riiiight but,,, do they really WANT to win? I mean if the war goes on and on there's more bombs and aircraft carriers and such, right? I mean who would want to cut off THAT gravy train?


Ima anal sphincter's picture

Well...... that was a laugh. British participation you say?

That punny ass island full of gutless pukes. Right on!!

Speaking of history, didn't Churchill force WWII into being in the first place? Something about Germany kicking your ass economically?

I don't know why y'all raised such a fuss, your face has been in the dirt from the late 1700's. You should be used to it by now.

And damn....... can you guys fuck up the English language!!!!

adamas's picture

Erm, I think you just avoided the question. 

Please name me a single conflict that the U.S. has actually won ?

And name one that Britain has lost , since 1066 

Your shout 

Ima anal sphincter's picture

You are delusional. Two dates spring forth, 1783 and 1815. Were not those both defeats of the UK?

And do you not think you would be speaking German right now if it wasn't for us?

Such a shame too. The Germans are a fine people. I think we helped the wrong side.

I work with an Englishman. I never understood how anyone could sit around and watch You Tube videos of England's role in WWII and almost want to beat off right there.

It's almost like y'all have to scream out your minuscule accomplishments  so everyone else will take notice. I don't, nor will I ever.

Advoc8tr's picture

It was the Russians that defeated the Nazi's ... your country rescued, hid and hired them all for seret weapons dev and good ideas.