- Billionaire Paul Singer’s latest letter to investors predicted an even steeper drop in stocks due to the effects of the novel coronavirus pandemic, but also warned about doomsday scenarios unrelated to the virus.
- Singer warns about the damage a solar flare would do to the world’s electrical grid and how hackers could have “unimaginably negative consequences.”
- The manager is known for his pessimism, and he scolds the overall market for missing “the slowest moving black swan in history.”
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Billionaire Paul Singer, founder of $35 billion Elliott Management and known pessimist, believes stocks still have a long way to fall, as reported by Reuters earlier.
But Singer also tells his investors in a 14-page letter that there are worries and concerns related to the stock market and current pandemic as well as not. He’s worried about the structure of the global economy once business re-opens, international relations with China, solar flares, and hackers.
“The global economy is currently experiencing the deepest and quickest downturn in history (including the 1930s). Among the most surprising aspects of this situation is that most investors, Wall Street economists and strategists, business executives and governments were exceedingly slow in identifying that a deep recession and vast economic shutdown was underway,” he wrote in a letter dated April 16.
Singer, a former lawyer famous for using the courts to get his way as an investor, such as when he impounded an Argentina naval ship over a bond payment, believes investors currently are “too influenced” by 2008’s economic crash, and warns that “there does not yet appear to be serious undervaluation” despite the stock market’s plunge.
Elliott declined to comment beyond the letter.
Here are some of the worries Singer details for investors:
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