"Inflation will soon become a main concern for investors... this will change the basic relationship between stocks and bonds and could set up the financial markets for severe turmoil, like in the late 1990s when the collapse of Long-Term Capital Management sent shock waves around the globe."
Yesterday's barrage of 13F releases showed that hedge funds like Third Point, Eton Park and Blue Ridge piled into shares of major banks, David Tepper's Appaloosa jumped into the pharma sector starting new positions in Teva, Pfizer and Mylan while Buffett aggressively added to airline steaks and nearly quadrupled his Apple position to $7.7 billion. Here is a full breakdown of who bought what in the fourth quarter.
“The big picture for investors is this: Trump is high volatility, and investors generally abhor volatility and shun uncertainty... If things go wrong, we could find ourselves at the beginning of a lengthy decline in dollar hegemony, a rapid rise in interest rates and inflation, and global angst...”
“Nationalism, protectionism and militarism increase global tensions and the risks of conflict. For these reasons, while we remain open-minded, we are increasingly concerned about the emerging policies of the Trump administration,”
"I want to be loud and clear: populism scares me... policy makers need to 'man-up' and pay for the social cohesion that we need to keep our societies advancing... it probably means more redistribution than we have in place at the moment and accept that this may be a higher tax burden on people..."
How do you know with certainty that Davos has not only jumped the shark, but is now an outright parody of what itself? One answer: when you have a handful of semi, and non-semi billionaires, confused by the populist backlash of the past year, sit down and discuss among each other how a "Squeezed and Angry" middle-class should be fixed.
"I have been reflecting for quite a while on the destructive effects that fake and distorted media are having on our society’s well-being...This is not just a fringe media problem; it is a mainstream media problem... and it is questionable whether the world will be just fine if this fake and distorted media epidemic is not arrested."