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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Obsidian Samctum's picture

Pizzagate is real.

Pizzagate is real.

Pizzagate is real.

Damn you to hell if you think it is fake.

Rothschild Omniscient's picture

It is disgusting. Especially in places like Aston Kutcher mentioned where the children are raised to believe the abuse is the norm. Sick people we have on this planet.

ZazzOne's picture

In other words, the global elite want to crash the markets so they can buy back in cheap!!!

FemDayTrader's picture

that will happen when they want it to happen. There are ways to be a part of the elite. at least to be on the same field. 

Sugarcandy Mountain's picture

What? You mean like in August 1929?

Don't they own it all already?

No Escape's picture

The house always wins!

LOL123's picture

Rothschild Corp. House that is....

el buitre's picture

The only reason that the Reptiles warn the Pissants is so after the latter lose everything, our masters can tell us, "it's not like we didn't warn you."  Who could have seen this coming?/sarc  Means the bastards are pulling the plug real soon.

FemDayTrader's picture

More speculation here.  I always go with the analsyts who have an actual record.  The only one that is covered by Zerohedge is Shepwave. They have been calling the markets in precision. Keep it up guys.

rusty55's picture

definitely  at least the only ones making money on here are the wavers. 

LOL123's picture

The main arm of Rothschild money is in "management" at high levels.

"We're mainly interested in knowing and believing in the management team (AkaHillary, McCain, Kerry, Schumer, Goldman Sachs, JP Morgan just a few examples). We've ended up to be invested in MEDIA ( all the negative info toward Trump), and Technology ( Israel number 2 in technology production with USA first),real estate ( wherever there are natural resources oil,, metals, gas, agriculture)....we are the software provider for CCtv weather (China Central Television broadcaster in China). David Rothschild the great promoter of climate change and ecology ( while the rest of the family sucks up the profites of rapping the earth.... So as below as above lol).

Don't EVER believe anything the Rothschilds and " management"say.

http://knowledge.ckgsb.edu.cn/2013/06/26/china/el-rothschilds-investments/

JailBanksters's picture

He looks and acts more like Montgomery Burns every year.

 

Sambo's picture

Ha ha...the wolf is telling the sheep where to gather for the slaughter. 

guru69's picture

and the sheeple will do as their told because they are the sheeple

iconic's picture

When is this old gasbag going to die? So many good people die young. But these evil snakes are always here always old. Weird.

Clowns on Acid's picture

He has to...because when the US markers erupt / implode...the Chinese Communist have the werwithal to maintain prices...as all Communist centrally controlled instiituions do.....they and Lord Rochschild have alot in common....don't cha know ...

RichardParker's picture

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...

Should read;

Two months later, it was the turn of another financial icon - if from a vastly different legacy and pedigree - that of Vader Investment Trust Chairman himself, Lord Vader, who echoed Bill Gross...

TFIFY

SheHunter's picture

Lord Rothschild.  The archaic figurehead Rothschild speaketh?  I quiver in my boots.  The lord hath spoken.  His highness doth utteress.

OMG .  No one a few years younger or a little more in the current times you could find to state the obvious?

mrbyrite's picture

the one on the left is dead.  No, unfortunately I mean eugene not hilary

sinbad2's picture

The guy on the left is Evelyn Rothschild, and I can assure you he is still alive.

Eugene Rothschild died in 1976

Bemused Observer's picture

Nice to see someone else gets it...It isn't a family pedigree we should be looking for, it is an ideological one. THAT is the real "Rothschild conspiracy", the one that is being passed on from one generation to the next.

This one Jewish banking family isn't the problem. Like all the other banking families, they gravitate towards the family business, and tend to have lots of connections and ideas for increasing wealth...they are no better or worse than their peers. 

But at some point, someone, (and maybe it was a Rothschild, maybe not..) got bitten by the greed/power bug, and banking became Big Finance...a 'nation' in its own right, setting out to conquer the world. It was almost certainly someone from the banking community that started this ball rolling, as only they had the knowledge needed to 'arrange' things properly. 

This modern day 'Rothschild family', far from being an insular Jewish plot, is actually the image of diversity, a Benetton ad for unrestrained capitalism, and about as kosher as Scrapple.

Librarian's picture

contrarian indicator?

Bunga Bunga's picture

It will be all Trump's fault.

Sugarcandy Mountain's picture

You're right, it will be. Nice inauguration speech he gave, though. Shame he couldn't actually get any of that shit done.

Drain the swamp... fills it further up with GS stooges.

Build the wall... err, no.

Tax reform... never gonna happen.

No more foreign entanglements... au contraire.

Repeal Obama(don't)care... how's that working out?

Say what you will about the magic mulatto (Satan's little helper), but you can't argue that he didn't get shit done.

The man's a giant fraud.

 

Silver Savior's picture

Yes and I am salviating over the idea.

Silver Savior's picture

Creepy old bastard. You have nothing to worry about, you live lavishly when the people live in poverty! 

NuYawkFrankie's picture

How come it's ALWAYS the SAME pboto Ol' Shylock?

Is the decrepit old fcker even still alive???

Batman11's picture

Neo-liberalism was like a year zero for capitalism.

Small state, unregulated capitalism was where it started hundreds of years ago and we forgot almost every lesson that has been learned along the way.

Its finance capitalism forgot the imaginary nature of the wealth created in Tulip Mania and embarked on asset price inflation as a source of real wealth, particularly in real estate.

As the toll of real estate busts mounted, everyone looked the other way.

The 1990s - UK, Japan, Australia, Canada and Scandinavia.

2008 is just another real estate bust, leveraged up and transmitted internationally by complex financial instruments.

Irish, Greek and Spanish real estate crashes.

Australia, Canada and Scandinavia are queuing up for their second real estate bust.

Can you create real wealth by pumping up stock markets?

1929 said no and the dot.com bust got the message across again.

The Central Bankers are trying to stop all that imaginary wealth evaporating by pumping more money in to create a “wealth effect”, they have learned nothing.

It’s still year zero.

As they embarked on Laissez Faire in the 19th Century the Tory party was split between the “wealth creators” and the “wealth extractors”.

The repeal of the Corn Laws to usher in the era of Laissez-Faire.

The landed aristocracy wanted high corn prices to get more land rent.

The businessmen wanted lower corn prices, to lower the cost of living, for lower, internationally competitive wages.

The conflict between rentier and business interests whose interests are directly opposed, what the rentier gains has to be paid by business in wages.

“Income inequality is not killing capitalism in the United States, but rent-seekers like the banking and the health-care sectors just might” Nobel-winning economist Angus Deaton

The brightest economists are just starting to see the problem they knew about in the 18th and 19th centuries.

We are just starting to move on from year zero.

You can’t run an economy on debt, this was last tried in the 1920s and it tipped over into the Great Depression. Debt based consumption and debt based speculation made the 1920s roar, but it was all built on debt leading to its eventual collapse.

https://cdn.opendemocracy.net/neweconomics/wp-content/uploads/sites/5/2017/04/Screen-Shot-2017-04-21-at-13.52.41.png

1929 and 2008 stick out like sore thumbs when looking at unproductive, private debt in the economy.

You can even see the S&L crisis in the 1980s, the graph rises sharply.

Our mainstream economists have attributed it to a “black swan”.

It’s still year zero.

Our understanding of money and debt has been regressing for one hundred years.

“A lost century in economics: Three theories of banking and the conclusive evidence” Richard A. Werner 

http://www.sciencedirect.com/science/article/pii/S1057521915001477

It’s still year zero.

Economists learn from past mistakes and we’ve pretty much repeated them all, a great leap forward in economics is just waiting to occur as its pretty much year zero.

 

 

Batman11's picture

The 1920s saw a great change, where productivity had improved so much, there was now a great excess of supply compared to demand.

Demand had to be manufactured along with the excess goods through extensive advertising.

To create the necessary demand they allowed people to take on credit.

Debt based consumption and debt based speculation made the 1920s roar, but it was all built on debt leading to its eventual collapse in the debt deflation of the Great Depression.

Keynes looked at this and came up with a solution, redistributive taxation to provide subsidised housing, healthcare, education and other services.

The cost of living = housing costs + healthcare costs + student loan costs + food + other costs of living

Disposable income = wages – (taxes + the cost of living)

A low cost economy whose consumers have a lot more spending power at moderate wage levels.

The year zero economists portrayed this as something different to get back to where we started, debt based consumption.

“Democracy in Chains” by Nancy MacLean, looks at the work of one of the architects of the great leap backwards, James Buchanan.

 

Batman11's picture

The Classical Economists were probably further ahead.

They taxed “unearned” income to provide a low cost economy ensuring hard work was rewarded and rentier behaviour was penalised.

The Classical Economists of the 19th Century were only too aware of the two sides of capitalism, the productive side where wealth creation takes place and the parasitic side where wealth extraction takes place.

It all disappears in very early neoclassical economics.

This has all gone by the time Keynes got into economics, though he still recognised the parasitic nature of rentiers and how capitalism tended to degenerate.

It naturally generates inequality and as this becomes embedded, a rentier class starts to form. The first generation may be hard working entrepreneurs; the second generation will be looking for easy ways to conserve their inherited fortune.

Just look at America today.

 

DeathMerchant's picture

So that is what a Rothschild looks like. He almost looks Jewish

Sugarcandy Mountain's picture

Khazar blood line. None of these cocksuckers are even remotely jewish in the biblical sense.

BigCumulusClouds's picture

Look at how much of a coward Jacob Rothschild is when asked some simple questions by a couple kids.

https://m.youtube.com/watch?v=3lk3SgkJ_I0

White Devil's picture

When is it going to finally die?

BGO's picture

UWL = Upright Walking Lizard

Wexx's picture

Translation: "We have lost control of the world's biggest monetary fraud of a market and are truley scared but we will save the day by starting WWIII to decimate the world population".

Fourth Horseman's picture

That slimy kike needs to go back under the rock from where it came.

He-He That Tickles's picture

Where are they now? Sloth from The Goonies.

iamerican4's picture

For Crimes against Humanity the entire Rothschild families' Vatican-front and personal assets shall be fully expropriated along with the Anti-Christ's it serves.

The assets of its American Beast Fifth Column shall also be expropriated prior to the public hangings of its principals for High Treason, in rows on gang-gallows reconstructed at Ft. McNair.

We are ruled only by Truth and Justice, not by Satan.

Praise God - America's only Sovereign.

Ban KKiller's picture

Know your enemies. Or all enemies...the .01. 

turkey george palmer's picture

Too bad it's all for nothing

lakecity55's picture

But wait! If we copy his investments we can get rich and ZH can then rule the world in organized anarchy!

Theremustbeanotherway's picture

The old Luciferian has more or less come out and told you what his family is planning!

Bemused Observer's picture

You give an awful lot of credit to these people. I just can't get on board with the whole Rothschild conspiracy thing. Not because I don't believe a person could be capable of doing something like this, but because I don't believe such a person could then successfully get his ENTIRE FAMILY to go along with it, never mind then getting FUTURE GENERATIONS to do so as well. I actually HAVE kids, and you can't get them to keep their rooms clean without a fight, forget about getting them all to take control of the global economy. And that's the generation you actually have some control over...what do you think your grandchildren will think of your 'master plans'?

When is the last time you ever made a major decision based on what your grandfather wanted? Yeah...see, that's the problem. That's where the Rothschild conspiracy runs out of road...