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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Sugarcandy Mountain's picture

And name one that Britain has lost , since 1066

You're currently well on your way to losing the undeclared war being waged by your own home-grown Jihadis... give it a little time. Your so-called police "service" is actually enabling the other team.

You can't even arrange to Brexit properly. Hahaha... soggy little island.

el buitre's picture

Churchhill did collude with Wilson to bring the US into WWI for sure.  Wilson is triply damned - the Fed, the IRS, and WWI.  Churchill set up the whole Lusitania hoax.  It was carrying arms and ammunition.  Little known but very eductional point in history.  This "great man" was a cold blooded killer.  The Rothshits were undoubtedly giving them both instructions.

veritas semper vinces's picture

Exacrly. There is no US president  I hate  more than him.

Sugarcandy Mountain's picture

Want to understand how it all went down? Give this video a go. Makes your history lessons seem like the fantasy that they actually were.


oDumbo's picture

We all speak English. It is extremely important that we do not attack each other. Focus on our common interests and ambitions, not our differences or petty grievances. Seriously, focus people.

blue51's picture

Great Britain ??? I don't think so .  https://youtu.be/nse0Ch5_cKs

adamas's picture

Just watched it... too sad ... and too true... 

blue51's picture

It is a crime against humanity , what " they " are doing to england , and europe .

Ima anal sphincter's picture

I "will" agree with you on this one.

(and England has given the world some of the finest music ever)

Son of Captain Nemo's picture

Agree with everything you just said Anglo-Zionist boy.

You have always played the "pipe" and we follow you into war and debt out of our delusional stupidity.

But let me ask you something that you clearly don't like to contemplate or mention... Why have you hitched your wagon to the colony for so fucking long?... And worst of all to your own destruction along with that of Yankee "Doodle"?...

You had plenty of opportunities to make rational business decisions by building positive relationships in Eastern Europe after the fall of the Soviet Union, but like the greedy little British cunt that you are "you went ALL IN" with your bet and like the loser you are YOU LOST HUGE!

Now it's either role over and take it up the ass by Ivan "the beautiful" or take the "pill" (https://en.wikipedia.org/wiki/Samson_Option) and check out entirely.

But here is where rubbing the salt in the "open wound" comes in... YOU'RE STILL THE LITTLE BITCH who's sun set long ago and now cousin Forrest Gump in America will make that life and death decision FOR YOU!!!

Night Night little bitch cousin!!!

Son of Captain Nemo's picture

Well vs

After all... "Life is like a box of chocolates" when you're an American...

Eyes Opened's picture

I find it funny , in a sad kinda way, how the little people fight & argue over who has the best / bravest / richest / most democratic / educated  leader/Country...

Meanwhile the elitists from EVERY country & none laugh at us, even here at ZH u are at each others throats. THIS is why the plebs will ALWAYS LOSE .....

So...whats it gonna be ...

All for one & one for All ?


Divide & Conquer...

FFS...Git yer shit together bitchez....


Sugarcandy Mountain's picture

There's nothing "Great" about Britain and it absolutely will not survive the levelling. Can't disagree with your first paragraph, though.

Eyes Opened's picture



U like him... don't you.... :-)

Son of Captain Nemo's picture

"U like him... don't you.... :-)"

Sure!... In some ways you have to admire the abnormal "Evel Knievel" nature these egos that are suicidal with the next biggest "stunt" living on the edge with reckless abandon possess!

While I admire the demented and warped spirit like a "Hannibal Lecter" as a curiosity something to look at in a bell jar like a malignant tumor or cyst or a wild animal in a "cage" it doesn't mean I want to follow them with Reverend Jim at the "Kool-Aid" party who decides to check out bringing the "congregation" with him when he realizes he's played his last card and wants to "call it a day"!

In cages or as "dead tissue" in a bell jar in isolation where they can't kill or ruin anyone is the ONLY place they belong!

As I've always said...

If you want to kill yourself for your own "fuck ups", go do it in the privacy of your own home. And if you have followers that are also suicidal that worship at your feet? Encourage them to go with you... Cuts down on a whole next generation of "useless bottom feeders"

Just don't send your money to pay for standing armies and navies that mess with the rest of us that want to choose a different path other than "YOUR OWN"!

Arnold's picture

Well the professional portfolio dick waving puts Buffet in a buying frame of mind...

Keep your powder dry Warren, bubula.

Father ¢hristmas's picture

Stop being a pussy and give us the fucking chip already, you pompous ass Hymie.

harrybrown's picture

and what of all their "off book" holdings... "we dont discuss such matters in public"

Death to the zionist money changing murderers

max2205's picture

Bittulips did way better

EternalAnusocracy's picture

Is there a fucking "Rothschild ETF" I can start investing in with $2500, and then add $500 a month?    /s

ludwigvmises's picture

RIT is trading on the London Stock Exchange. You can buy shares there, it's not an ETF though but a common stock.

Kelley's picture

You and I don't have the inside information to buy or sell at the right time. That informatio is reserved for the Rothschild's and their partners in crime.

The Real Tony's picture

The American stock markets always take down all the major indexes with the exception of Japan and Hong Kong. RIT will get pulverized when the U.S. stock market crashes.

ludwigvmises's picture

It didn't get pulverized in 2008 or the 2000/2001 dot-com crash, you can check the history from the 1980s.

dangerb407's picture

Load up on gold, bullets and 3X short ETFs; the Sith Lord admitted that they are about to "pull it" with respect to the markets!

indygo55's picture

I wonder it the ETF shorts will ever pay out.


dangerb407's picture

Good point!   Questionable at best

The Real Tony's picture

I'm hoping for a 50 to 60 percent one day fall in the U.S. markets with a closure of the markets of about 2 weeks. I'm looking to buy gold and silver bars at a 20 percent idiscount when all thre margin calls roll around on stocks.

guru69's picture

you're also looking for monkeys to fly out of your arsehole

el buitre's picture

Agree.  Gold and silver will drop like a stone for a couple of weeks due to the margin calls, then explode.

IranContra's picture

Rothschilds control MI6, Iran, ISIS, and ZH. Hence "ISIS" (MI6) is acting up.

However, they are all just garbage collectors. The Creator is in charge, and he has some surprises ready for all of them.

ByTheCross's picture

Funnily enough, you can get all the way from the red cross of the Knights Templar shield ('rotes schild' in German) to Isis once you understand what the cross actually means.

And then this sheds light on what the heck is going on...


Arnold's picture

No, you need some further Heraldry instruction.

guru69's picture

bow to your false sky god

IranContra's picture

The British "Observer" (MI6) "informs" to us today that ISIS is now mostly Moroccans in Spain. They supposedly plotted to blow up a church with the "Mother of Satan" bomb (an insult to "Mother of God" which is something Muslims are not familiar with).

adamas's picture

If you think the Rothschild family don't talk their book you're stupid. The stock markets are going to be shaken , the apples that fall from the tree will be bought by the Rothschild family prior to a rocket fuelled super spike to 40,000 DOW

quadraspleen's picture

Just as his esteemed ancestor Mayer did back at the end of the napoleonic war. Cleaned out the London stock exchange in a day..

GRDguy's picture

Why stop at Dow 40,000.

Venezuela IBVC index has gone from 40,000 to 185,000+ in ONE year.

They must really be doin' great.

south40_dreams's picture

Beelzebub speaketh. The gates of hell opened a crack and out came his voice

joego1's picture

and then he burped up a little bit of dead baby.

quadraspleen's picture

He’s forgotten to add the BIS and all the other central banks, that he cross chairs with the rest of his family, to his balance sheets...and all of their physical gold that’s hidden in the Philippines and Switzerland..tut tut, Jacob...

Spike the Railroader's picture

HAhahaha not a time to add risk? 

My idea of adding risk would be;

  not stacking firewood for winter, not checking the backup generator, not adding cans to the cellar, not mending our wool sweaters and mostly not to tell our loved ones how much they mean to us.

  My wife and I live differently out here in the woods. We are a few miles from town and money doesn't equate to good old fortitude and hard labor.....and good boots for the feet.

Eyes Opened's picture

+1 Spike... whats the saying ?

"All that glitters is not gold"

Lets Keep stackin Spike.... the cords of firewood I mean !!   :-)

Falconsixone's picture

Choke on a muslim.

radbug's picture

Ex-Bretton Woods: what is up will be down and what's down will be up.

Kelley's picture

There is an exception. Look at the second chart. The Rothschild's have been gaining more and more for 29 years with the gap ever increasing. 500% over and above mere mortals at the end of the chart.

Kelley's picture

Two opposite points:

1- Can't really argue with what the decrepit man has written.


2- The  "Performance since inception" chart shows that the Rothchild's have gained FIVE times over the competing yardstick. Furthermore the gap is ever widening since 1988. That's a period of 29 years over which the Rothschild's have never been wrong. The only other example of that would be a gambling house where the house always wins. In real life, not even Vegas can make that claim.

It's a given that gambling houses have the odds stacked in their favor. But the marketplace is supposed to be a level playing field. hahahaha

The chart should be used as prima facie evidence of 29 years of continuous theft. 

ByTheCross's picture

Ah, but, does the ploughman really steal the labour of his oxen?

The more interesting question, is to what use has all the labour so extracted been put? It certainly amounts to far more than palaces, ocean liners, and private jets.