‘The turmoil we are seeing right now is the result of the unwinding of this leverage’ Scott Minerd says
by Mark DeCambre
It’s going to get worse before it gets better — a lot worse, according to Scott Minerd.
‘If there is a risk to what I’m saying, the risk is that it will be worse, not better.’ – Scott Minerd, CIO of Guggenheim Partners
The global chief investment officer at Guggenheim Partners says that investors are still holding out hope in many sectors, and that may be a sign that the worst isn’t over for a market that has taken a beating over the past month.
‘Since we haven’t seen capitulation yet, it would be premature to step in and buy aggressively at current levels, whether it is stocks or credit asset.’
Minerd offered some grim insights for his clients in a Sunday research report, published around the time the Republican-controlled Senate failed to pass a rescue package to help struggling businesses and individuals navigate the global pandemic that has brought economies across the globe to a screeching halt.