"Fund Manager's Cash Hoard Signals Impending Stock Market Crash"

1 min read
Source: MarketWatch
"Fund Manager's Cash Hoard Signals Impending Stock Market Crash"
Photo: MarketWatch
TL;DR

London-based money managers Ruffer & Co. are holding nearly 60% of their flagship Total Return fund in cash and short-term bonds, along with 20% in longer-term inflation-linked bonds, gold, safe-haven Japanese yen, and put options on the market. With only 15% exposure to the stock market, the fund is preparing for an imminent stock-market crash. Ruffer's bearish stance reflects their belief that record monetary tightening and cracks in the US economy will lead to a major reckoning, where inflation, government debts, and higher bond yields wreak havoc on stock-market valuations. While the firm's bearish bets have resulted in underperformance this year, they maintain that the liquidation event has only been postponed, not canceled.

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