MAXIN GLOBAL FUND - USD is a Long / Short Directional hedge Fund incorporated in Luxembourg. It started trading on February,22 2022 and replaces MAXIN ADVISORS' MODEL PORTFOLIO which has been trading since January 1st 2014. At MAXIN ADVISORS, we manage FULLY TRANSPARENTLY and publish the transactions on a DAILY basis and the details of the portfolio on a WEEKLY basis.
Dark Clouds Over Europe
For some time now, we have been warning investors that European stocks had got ahead of themselves and were levitating at unsustainable levels considering Europe’s strong inflationary pressures, the sharp slowdown in consumption, rising social tensions and wage demands and a European Central Bank that is way behind the curve in its efforts to tame inflation.
No Central Bank can tame inflation when REAL interest rates are as NEGATIVE as they are today, mechanically feeding inflation itself.
And no Central Bank can tame inflation through gradual steps when inflation has become a deeply entrenched psychological – and therefore recurring – issue and when workers demand 10 % wage rises and resort to mass protests and strikes.
Christine Lagarde and the ECB are playing an extremely dangerous game in procrastinating in the hopes that inflation will come down by itself and the recent uptick in inflation in almost all the European nations is a dangerous sign that it could rise much further ahead, ultimately forcing the Central Bank to take rates much much higher than the consensus expects today and for far longer.
The market’s consensus estimate that European rates will peak at 3 % sometime in the summer is a triumph of hope over the harsh reality of economic laws and equity investors bidding up stocks to record high levels in the face of much higher interest rates, an economic deceleration that has already started, a looming debt spiral and inflation becoming THE most important political factor are dangerously carried away by their optimism and by FOMO.
For several days now, we have been worrying about the loss of upside momentum of European equities trading at or just under major long-term resistance levels. And we have consistently warned investors that the current over-optimistic sentiment and over-extended status of the major indexes were sitting the stage for a major break down very soon.
Today, we re-instated all our short positions in European Indexes.
In the US we took advantage of the fall in TESLA pre-market to take some profits on our strategic short positions and increased our long volatility exposure.
It has been our view that our projected last “Hurrah” we were expecting in US equities into April towards 4’200 / 4’300 was getting less likely by the day and as a consequence we had been taking profits on our long positions while increasing our short exposure.
New Asset Allocation
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