Keep investing in the U.S., says Hayman Capital Management’s Kyle Bass
Investors should keep investing in the U.S. rather than international markets, according to Kyle Bass, founder and chief investment officer of Hayman Capital Management.
“Europe has so poorly mismanaged their energy transition,” Bass said on CNBC’s “Power Lunch” on Wednesday. “I think in the next two years, we’re going to see countries like Germany that, on average, spend less than 1% of GDP on energy — that number could go to 8% or 9% of GDP.”
Bass continued, “Europe is in such dark times for the next 10 to 15 years. I can’t imagine — outside of a trade — buying Europe and selling it quickly. I would keep investing in the U.S.”
— Hakyung Kim
Keep an eye on the 3,900 S&P 500 level, chart analyst Katie Stockton says
Fairlead Strategies’ Katie Stockton said she’s closely watching the 3,900 level at the S&P 500, noting it’s in danger of being broken. “Unfortunately, the next support level is that 3,500 level that was tested back in October.”
The S&P 500 traded around 3,990 on Thursday, struggling to snap a four-day losing streak — its longest slide since December.
The broader market index has also given up a chunk of its January gains. It was last up about 4% for the year after popping more than 6% in January.
SPX year to date
“That abrupt reversal shows a shift in market sentiment that, I think, is … going to be difficult to weather in the near term,” Stockton said on CNBC’s “Squawk Box.”
— Fred Imbert
Us equity markets have entered the ‘Death Zone,’ says SocGen
Equity markets are running out of oxygen after the January rally, according to Societe Generale.
“Investors would do well to be extremely skeptical about the strong January US data,” analyst Albert Edwards wrote in a Thursday note.
“Aside from the well known seasonal adjustment problems, which have resulted in sharp rises in January payrolls and retail sales with irritating regularity (only for them…
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