×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: investor | north | korea | stock | market | selloff

Investor With 30 Percent in Cash Says North Korea Selloff Will Come

Investor With 30 Percent in Cash Says North Korea Selloff Will Come
(Michael Borgers | Dreamstime)

Monday, 04 September 2017 12:07 PM EDT

Stock markets are headed for a big selloff, maybe not today, but soon.

That’s the view of Nader Naeimi, who heads a dynamic investment fund at AMP Capital and helps manage about $110 billion.

The Sydney-based investor has about 30 percent of his holdings in cash, an allocation to gold and is short emerging-market currencies versus the dollar.

His fund has beaten 77 percent of peers over the past year, according to data compiled by Bloomberg.

While Naeimi joined a chorus of investors this morning in predicting a muted market reaction after North Korea said it successfully tested a hydrogen bomb, he sees the isolated Asian state as one of the factors that could eventually bring down the long bull run in equities.

“Markets need a correction,” Naeimi said. “There is a significant disconnect between uncertainty and market pricing of risk. North Korea and other events will provide the triggers for a correction.”

Japanese stocks fell as the yen and gold gained in Monday trading in Asia, with the benchmark Topix index dropping as much as 1.2 percent before paring losses. South Korea’s benchmark equity gauge fell 1.7 percent at the open and then trimmed its decline to 0.7 percent. All but two of 24 developed stock markets tracked by Bloomberg have posted gains in 2017, with the S&P 500 Index up 11 percent despite rising risks of a military conflict or trade war over the standoff with North Korea.

“While today’s fall in risk assets might not be deep, the process is one of an incremental rise in market volatility,” Naeimi said. This “will culminate in a deeper-than-expected correction.”

© Copyright 2024 Bloomberg News. All rights reserved.


InvestingAnalysis
Stock markets are headed for a big selloff, maybe not today, but soon. That's the view of Nader Naeimi, who heads a dynamic investment fund at AMP Capital and helps manage about $110 billion.
investor, north, korea, stock, market, selloff
270
2017-07-04
Monday, 04 September 2017 12:07 PM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved