Lord Rothschild Warns Of ‘Big Problems In 2016’

Fact checked
Lord Rothschild warns of 'big problems' this year

Lord Rothschild has issued a stark warning to investors, saying that 2016 is likely to be a very difficult year for the world economy. 

In his letter to investors, Rothschild warns, “not surprisingly, market conditions have deteriorated further…So much so that the wind is certainly not behind us; indeed we may well be in the eye of a storm.” On this basis, Rothschild highlights a “daunting litany of problems,” warning those who are optimistically sanguine about the US economy that “2016 is likely to turn out to be more difficult than the second half of 2015.”

Lord Rothschild Letter to Investors (via RIT Capital):

In my half-yearly statement I sounded a note of caution, ending up by writing that “the climate is one where the wind may well not be behind us”; indeed we became increasingly concerned about global equity markets during the last quarter of 2015, reducing our exposure to equities as the economic outlook darkened and many companies reported disappointing earnings. Meanwhile central banks’ policy makers became more pessimistic in their economic forecasts for, despite unprecedented monetary stimulus, growth remained anaemic.

Not surprisingly, market conditions have deteriorated further. So much so that the wind is certainly not behind us; indeed we may well be in the eye of a storm.

The litany of problems which confronts investors is daunting:

  • The QE tap is in the course of being turned off and in any event its impact in stimulating asset prices is coming to an end.
  • There’s the slowing down to an unknown extent in China.
  • The situation in the Middle East is likely to be unresolvable at least for some time ahead.
  • Progress of the US and European economies is disappointing.
  • The Greek situation remains fraught with the country now having to cope with the challenge of unprecedented immigration.
  • Over the last few years we have witnessed an explosion in debt, much of it repayable in revalued dollars by emerging market countries at the time of a collapse in commodity prices. Countries like Brazil, Russia, Nigeria, Ukraine and Kazakhstan are, as a result, deeply troubled.
  • In the UK we have an unsettled political situation as we attempt to deal with the possibility of Brexit in the coming months.

The risks that confront investors are clearly considerable at a time when stock market valuations remain relatively high.

There are, however, some influential and thoughtful investment managers who remain sanguine about markets in 2016 on the grounds that the US economy is in decent shape – outside of manufacturing – while they feel that economic conditions may be improving. To them, the decline in these markets may have more to do with sentiment than substance. Others are less optimistic but feel that the odds remain against these potential difficulties materialising in a form which would undermine global equity markets.

However our view is that 2016 is likely to turn out to be more difficult than the second half of 2015. Our policy will be towards a greater emphasis on seeking absolute returns. We will remain highly selective when considering public and private investment opportunities. Reflecting this policy, our quoted equity exposure has been reduced to 43% of net asset value.

There’s an old saying that in difficult times the return of capital takes precedence over the return on capital. Our principle will therefore be to exercise caution in all things in the current year, while remaining agile where opportunities present themselves. Problems have a habit of creating opportunities and I remain confident of our ability to identify and profit from them during 2016.

47 Comments

  1. If anyone should know, it is the Jewish Organized Crime Family the Rothschild’s, since they are the people manipulating everything and pulling all the string.

  2. If anyone should know, it is the Jewish Organized Crime Family the Rothschild’s, since they are the people manipulating everything and pulling all the string.

    • They get it. They’ve known about it for thousands of years, which is why revolutions never work. They preempt them, to derail them. Every setback they have experienced, they have worked clandestinely to undo. The people they use in these efforts, are the ones who are unaware. A revolution will only change who points the gun at your head.

      The only true capital any government has, is the cooperation of the populace. The populace must see this, and stop cooperating. That’s the only way to freedom. Violence will never work.

        • No, that trick never works. That’s why they are always trying to start civil wars. Revolutions always result in another power structure. They finance both sides of the wars.

    • They get it. They’ve known about it for thousands of years, which is why revolutions never work. They preempt them, to derail them. Every setback they have experienced, they have worked clandestinely to undo. The people they use in these efforts, are the ones who are unaware. A revolution will only change who points the gun at your head.

      The only true capital any government has, is the cooperation of the populace. The populace must see this, and stop cooperating. That’s the only way to freedom. Violence will never work.

    • No, that trick never works. That’s why they are always trying to start civil wars. Revolutions always result in another power structure. They finance both sides of the wars.

  3. There doesn’t have to be financial problems ever. It is the horrendous greed of the people who own our economy today that keeps us all in bondage to misery and anxiety. The world’s people must sometime soon reclaim the wealth of the present day oligarch’s and begin a new economic movement in the world of humanity. First provision must be: NO MORE WARS.

    • It’s our own shortsightedness that causes this. They do nothing but give orders. If the populace refused to cooperate, these parasites would have to tend to their own needs. The caviar they gorge on, and the champagne they drink, are not produced by them. The people hand it over to them, and pay a markup, for the paltry amount the parasites allow them to have.

  4. There doesn’t have to be financial problems ever. It is the horrendous greed of the people who own our economy today that keeps us all in bondage to misery and anxiety. The world’s people must sometime soon reclaim the wealth of the present day oligarch’s and begin a new economic movement in the world of humanity. First provision must be: NO MORE WARS.

    • It’s our own shortsightedness that causes this. They do nothing but give orders. If the populace refused to cooperate, these parasites would have to tend to their own needs. The caviar they gorge on, and the champagne they drink, are not produced by them. The people hand it over to them, and pay a markup, for the paltry amount the parasites allow them to have.

  5. maybe everything is going to turn around for the positive this year and old man Rothschild is actually bullish on market conditions and just needs the common people out there to panic and sell so he can buy up the market ad advantageous prices thus expanding his wealth/dyansty a little bit more. stranger things have happened.

  6. maybe everything is going to turn around for the positive this year and old man Rothschild is actually bullish on market conditions and just needs the common people out there to panic and sell so he can buy up the market ad advantageous prices thus expanding his wealth/dyansty a little bit more. stranger things have happened.

  7. what an ugly, filthy, meaningless, unimpressive, unintimidating, fuckface of a son of a bitch motherfucker. Why don’t you invest a billion or two in a face transplant, including those teeth.

  8. what an ugly, filthy, meaningless, unimpressive, unintimidating, fuckface of a son of a bitch motherfucker. Why don’t you invest a billion or two in a face transplant, including those teeth.

Leave a Reply

Your email address will not be published.




This site uses Akismet to reduce spam. Learn how your comment data is processed.