BX - Market investors aren't as worried about the state of the world as they should be - Paul Singer
2023-10-19 13:23:47 ET
Paul Singer, founder, president, and CEO of Elliott Investment Management, said that market ( DJI ), ( SPY ), ( COMP.IND ), ( CL1:COM ) investors are not as worried as they should be, given the current geopolitical conflicts involving Russia, China, and Iran.
“The world is now completely dependent on the good sense of leaders to avoid an Armageddon,” he said at the Capitalize for Kids Investors Conference in Toronto on Thursday, Bloomberg reported.
The world, he said, is in a more perilous place than markets, which have remained relatively calm amid the ongoing conflicts and war, are being priced at.
Singer, who is known for his bearish views of the market, also expressed concerns about private credit ( BX ), ( BAM ), ( BDC ), ( XFLT ).
He said that “some of the money is being used to provide liquidity to troubled companies that are actually insolvent.”
In addition, he said that if there is a recession or a major market downturn, the Fed would cut short-term interest rates to 1–3%.
He recommended receiver options, which Elliott Investment Management owns a lot of.
“They are not cheap,” he said, “but they are very likely to work in a stressed market environment.”
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Market investors aren’t as worried about the state of the world as they should be - Paul Singer