Boaz Weinstein, boss of New York-based hedge fund Saba Capital, is “very pessimistic” about the current investment climate and believes global stocks could be heading for a decades-long, Japan-style bear market, according to a report by The Financial Times.
Boaz Weinstein, boss of New York-based hedge fund Saba Capital, is “very pessimistic” about the current investment climate and believes global stocks could be heading for a decades-long, Japan-style bear market, according to a report by The Financial Times.
Saba Capital was one of the world’s best performing hedge funds during the market turmoil of 2020, but boss Weinstein is far from optimistic about investment opportunities in the coming years and believes that the ending of central bank stimulus programmes aimed tackling high inflation could put stocks in the “doldrums” for several years.
In an interview with the Financial Times, Weinstein said: “I am very pessimistic. There isn’t a rainbow at the end of all this.”
And as central banks transition from quantitative easing to quantitative tightening – which involves selling bonds back into the market – investors will be left facing a “real headwind”.
The report cites an unnamed source as revealing that Saba’s Master fund, which bets on dislocations in credit and equity markets, gained 73.2 per cent in 2020 and so far this year has chalked up a 31 per cent gain.
