Dalio and Gundlach Say Emerging Markets are Risky

A host of concerns across the globe are raising red market flags for heavy-hitting investors such as Ray Dalio and Jeffrey Gundlach, says a recent Bloomberg article. Among the concerns; rising global turmoil and terrorist activity, valuations that “no longer compensate for potential flareups in North Korea and Venezuela,” and unpredictability on Wall Street. Emerging market shares are among the assets causing worry, given that they are yielding less that U.S. junk bonds for “only the third time in history,” the article says. According to the article, DoubleLine Capital CEO Gundlach’s believes traders should be “moving toward the exits” on […]

Singapore’s Sovereign Wealth Fund Warns Investors About Looming Market Risks

Singapore sovereign wealth fund GIC is warning investors that low readings in the market’s “fear gauges” could be signs of trouble down the road, according to aBloomberg article from earlier this month. One of those gauges, the VIX, is reported to have recently hit the lowest level since 1993, even lower than those seen in 2007. GIC’s chief executive officer Lim Chow Kiat says that the level of uncertainty is “very high” versus the low volatility in equity prices, adding, “We think this indicates investor complacency, another reason for us to be more cautious.” The article says Lim argues that […]