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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LOL123's picture

Rothschild is a corporation not an individual. They have spokes persons for the corporation and they show themselves before big events to give warnings to the public... It's a game. Not all family members including add ons participate in the family business. They are bound by secrecracy and greed.

Don Treadonme's picture

Lucifer commands that the Bankers hold steady? ... and damn that US election the election of Queen of Pedofeelya was nearly esconsed on Her throne, damn.

8-2-1776's picture

Demons always lie.

Demons always want chaos.



Your Creator's picture

markets crash when there is too much bullishness in the air.  I see a lot bearish sentiment right now.

Solio's picture

What is it's value?

When your cash ain't nothing but trash, not much.


lord rotschild is not a bad guy unlike his nasty relatives. we nee more people like him

FBaggins's picture

Jacob Rothschild has always had incredible monetary foresight and remains thoroughly diversified despite what happens to the rest of us. I am told that he not only has considerable holdings in China but that he even has a very secure placement in one of the warmest places in the hereafter.  


He likely will soon follow in the footsteps of his predecessor Jacob Marley in the money business: “In life, my spirit never rose beyond the limits of our money-changing holes! Now I am doomed to wander without rest or peace, incessant torture and remorse!”

Lord Peter Pipsqueak's picture

Don't you just love the way he writes his articles in the style of a fund, investment or hedge fund manager who is completely ignorant to the likely outcome of the decisions of the people who really control central banks and governments and the markets but instead, investing in the hope that his analysis has prepared the fund for the best possible outcome. When in fact he is one of the very people responsible for the chaos he fears in his review.

That way he looks just like one of us saps, instead of one of the cabal that will eventually decide when to pull the lever that opens the trap door to the western bond and stockmarkets. 

Their model of Keynsian stimulus and generating bubbles to offset recessions is now coming to its logical conclusion, as predicted by Von Mises, and according to him will only end in a hyperinflationary collapse along with the destruction of the currency, the central banking cabal already have plans in place to ensure their power grab in the ensuing chaos and financial ruin, just don't think they will be blamed, instead the media(who are controlled by them) will praise them for rescuing us from even greater ruin when they announce their well prepared plans to "save" the financial markets.

TeethVillage88s's picture

Where the hell has he been since 1971?

Where the hell have all the Grossly Wealthy people been as USA has been destroying it's currency and the world?

Sheeesh, Baron. Appoint some kin to do good work with a foundation funded by you to fix the USA & Western Banking. How about paying off all of Greek Debts instead of giving a high interest loan you call a bailout.

Teethvillage, Country Bail-Outs are Scams just like TBTF Bail-Outs

24millionsharecertificate's picture

Risk.   a situation involving exposure to danger.

catalyst.    a thing that precipitates an event.


code for:   be certain and go long!



NobodyNowhere's picture

Lord Rottenthieves

NobodyNowhere's picture

Traditionally, the Rottencheats do not predict; they announce.

NobodyNowhere's picture

This is just to avoid criticism post-crash that the Lordy sold stealthily before crashing the system.

DelusionsCrowded's picture

Anyone who has a position of influence either financially or (particularly) socially is used by the Brotherhood , either willingly (as members) or unwillingly . Many inter-generational social Icons are forced to play their part .

Sadly the sheeple don't know how deep this rabbit hole goes. They are thus always striking out at straw men .

NobodyNowhere's picture

Translation:  I have given all my lackies the final order to crash the system.

onmail1's picture

Mr. Zew the solution to high stock prices



HIGHEST(well there is never a highest HAh hah)


As usual, print moar dollars give to industry free

and pump up the stock prices further

???????? Right ??????

Well seems right for the zewish

a zewish takeover of america then the whole world

(by simply buying all stocks of all cos. of world, or bomb , loot, capture)

Then mabbee plan colonies on moon,mars, titan & europa


and ppl, bah forget about ppl,

when robots work for u, let ppl be unemployed

they will die on their own ,

(just ensure enough drug supply)

HAh ha

Chewbacca says arrrr


detached.amusement's picture

I for one recommend that Jacob be strangled with his own entrails

Bopper09's picture

Have fun in the Sheol.  Evil prick.

allthegoodnamesaretaken's picture

Jacob Rothschild is the King of the world, to doubt this is to revel in ideas that have the Earth, a globe, flying through a vacuum, endless space, at thousands of miles an hour speeds, dinosaurs, giant creatures that once lived on Earth for millions of years, humans, upright walking things that evolved from apes, the Sun 93,000,000 miles away from Earth, the moon 236,000 miles away from Earth.  On and on and on, the lies overwhelm us, but, we must not give in, we must not give up, we can know the truth.  Though:  

We have the learned scientist, the most, well educated, people, in all the world, we are told, telling us, everything is made of atoms, that humans have walked on the moon, that gods and devils are real, that people can have a dialogue with them, serve, them, honor them.  To make it short: everything we think we know is a god damn lie, what we refuse to know, most of the time, is the truth. 

A truth, you must know and soon, deal with it: Jacob Rothschild, is the King of the world, the Rothschild Family, the richest people who have ever lived, the Rothschild’s who own interest in, most of the time, controlling interest in, every god damn Company, Corporation, Media, Store, Politician, Judge, Police and Military, on Earth, bar none. 

It is time all the people know, we are on a flat Earth, that is stationary, that is surrounded by water, that is under the total influence of the Rothschild King, the eldest son of the Rothschild Family, and, the filthy rich people, who lick at the King’s feet.

All other knowledge is useless except people know: we are not free, we are not part of a Republic, a Democracy, or anything else except it could be construed to be Communist, except it is under the thumb of the King of the World Jacob Rothschild.  Here then is a test: would the world be thinking about a third world war except Jacob Rothschild wants it?  Remember the words of a mother, a mother who knew what she was talking about: if my boys did not want war there would be no war.  The ability to wage war whenever one choses, only a King can do this.

Give me control of the money and I care not who makes the laws M.A. Bauer.  Who could have easily said: because I will in a short time own them who make the laws and by that make the laws myself. 

So it is today, we have a King and he wants war, total war, a human consuming fire pit of war that leaves none not chosen standing or even alive…be afraid, be very afraid, we are in the grasp of mad men who do as they are told and who could not care less who gets hurt, not as long as they and their families are maintained and safe.


The President, the Congresses, the Judges, the Educators, the Police, the Military, for starters, are all under the command of the King, Jacob Rothschild.  Know this first and act accordingly.  You have been told, I have told you many times, you control the future, know this.     

Ready7's picture

"Rothschild is dumping "US" assets this morning because he realizes that the titles he claims to own to all these assets are based on fraud -- worthless -- but he is trying to sell them anyway.  I have never seen a more flagrant example of Bad Faith since the Florida Real Estate Swindles.

The banks have been involved in a multi-generational fraud scheme in which they have created, bought and sold interests in property in which they have no valid interest. 
Pure and simple -- they don't have a valid interest in anything they are selling. They are selling the equivalents to Quit Claims to property they don't own.  Those "US" assets belong to and have been claimed back by the American States and People.  All Secondary Creditors including the Rothschilds are out of luck."  http://www.paulstramer.net/2017/08/urgent-fraud-warning-use-buyers-remor...