Big-time Investors Betting Against Equities, Just Follow the Money - Celente

Published: Aug 18, 2016 09:35

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Although its seems a “new day has dawned” with equity markets pushing to record levels.

Wednesday August 17, 2016 11:56

(Kitco News) - Although its seems a “new day has dawned” with equity markets pushing to record levels, one longtime trend forecaster remains skeptical, especially when he looks to how known investors are placing their market bets.

“As evidenced by the factual data, it is not economic fundamentals driving equity and commodity markets higher,” noted Gerald Celente, founder of the popular newsletter Trends Journal, in his latest newsletter released Wednesday.

“It is high expectations for continued central banksters’ manipulation […] which have driven interest rates to record-low negative or zero levels and/or initiated new rounds of stimulus programs that, while boosting equity markets, have by all quantitative measures failed to generate true economic growth.”

Instead, at least with regards to the U.S. economy, the Federal Reserve’s intervention hasn’t done much to spur economic growth, Celente continued, which is at its weakest pace of any expansion since 1949.

Celente’s advice is to remain cautious, look to real assets like gold, because if investors “follow the money,” they will see that big-time investors like billionaire George Soros are betting against equity markets.

“A Bank of America Merrill Lynch survey found that cash levels in portfolios were at the highest levels since 2001, while Wealth-X Billionaire Census reports billionaires are holding $1.7 trillion in cash,” he noted. “According to regulatory filings, gambler George Soros, holding put options on some 4 million shares in exchange-traded funds, is betting heavily against the S&P 500.”

Gold is struggling ahead of the release of Wednesday’s Federal Reserve minutes, with December Comex gold futures last traded at $1,350.60 an ounce, down 0.46% on the day. However, Celente’s bullish forecast remains intact, calling for the metal to spike up to $2,000 an ounce if it breaks strongly above $1,400.

Meanwhile, U.S. equity markets continue to garner attention, trading near record levels. The S&P 500 last traded at 2,170, down 0.36%, while the Dow Jones Industrial Average traded at 18,478, down 0.39% on the day.

Source:Kitco

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