The world is facing a massive crisis in the stock market, with some analysts predicting a collapse in the value of the market.
The biggest hedge funds of the world are in the process of cutting the value by nearly $20 billion a day, as they are increasingly concerned that investors are taking too long to react to events and that the economy is headed in the wrong direction.
A massive fund of $150bn in US and British capital invested in US stocks has lost almost half its value in the first week, according to data compiled by Bloomberg.
A record $2.4tn has been wiped off the value for the month of March.
The loss of that much capital is a major blow for the fund and is likely to cause it to lose more than half its market value.
It comes amid a wave of panic selling by investors in the wake of the US election.
The market is on track to lose $2tn within a week, a hedge fund manager at one of the biggest funds told The Associated Press.
It’s hard to predict the exact price drop in the market, but we have already lost about $20b in a day and we’re already in trouble, he said.
The hedge fund was founded in the 1980s and has become a major player in the world of equities.
Its portfolio includes a number of high-profile assets including the New York Stock Exchange, the Toronto Stock Exchange and the London Stock Exchange.
It has more than $300bn under management, according the Bloomberg Billionaires Index, including more than a quarter of the value that the largest hedge funds in the US have under management.
But its biggest assets have seen their value plummet over the past few years, with the New Jersey-based hedge fund losing $4.5bn on Monday alone.
A spokesman for the hedge fund declined to comment on the latest losses, citing client confidentiality rules.
The latest losses follow another significant loss in the past week for one of Britain’s biggest fund managers, which saw the value plunge by almost $5bn a day.
A spokesman declined to be interviewed on the record.
An analyst at a fund that manages assets for the Royal Bank of Scotland said the losses in the fund were especially bad because the value is so high compared to the fundamentals of the asset class.
This is just not sustainable, the fund’s chief executive, Nick Burrows, said in a note to clients.
Burrows, who was previously head of global equity research at Fidelity Investments, said that the fund was now forecasting that it would lose $25bn a week by the end of next year.
“The market has been driven up by the election, so we can see the volatility around the world in a bad way,” he said in an interview.
Burrows said he believes that the markets will recover over the next couple of months but that it is “quite a big risk” that the world economy will continue to move in the direction of deflationary spiral.
If you look at the fundamentals, I think the world is moving in the right direction.
But it is very hard to say what will happen next, and it will probably be a while before we know what the outcome of the election will be.