London, March 1st, 2017

Interview of Jean Jacques Chenier by Frank Cramer from Futures Trader Magazine

Jean Jacques Chenier is the Chief Investment Officer of AA Management Ltd. a Global Macro
Hedge Fund manager. Jean Jacvques Chenier has been involved in the Futures and Alternative
Investment industry for over 40 years.

Frank Cramer :
Jean Jacques Chenier, Major U.S. indices have hit record highs since Trump's election in
anticipation of profit-boosting and pro-growth policies. Yesterday, President Trump said during his
yesterday's address to the Congress, and I quote : The stock market has gained almost $3 trillion
dollars in value since the election on November 8th, a record . The market is up about 15% since
election day. How long do you think, Jean jacques Chenier that this rally can last.

Jean Jacques Chenier :

The stock market has hit record highs since Trump's election in anticipation of profit-boosting and
pro-growth policies. Yesterday, Trump discussed tax reform, the central pillar of Wall Street's
optimism. He said that he will release a tax package in March. He also renewed his campaign-trail
pledge for a $1 trillion investment in infrastructure, which he said he will request from Congress.
Assuming that this is possible it will take time so get ready for some disappointment.

Frank Cramer :
Does that mean, jean Jacques Chenier thta the stock market is due for a correction ?

Jean Jacques Chenier :

The US stock market is now value at a P/E of around 20. The historical average P/E is 14, so there
is no doubt that the stock market is expansive. The recent rally has been only based on an increase
in the P/E ration, not an improvment of the results of the companies.

Frank Cramer :
However Warren Buffet, few days ago, said that the market was still cheap taking into account very
low interest rates.

Jean Jacques Chenier :

I don't think that the absolute level of interest rates is as much important as their direction. If
President Trump goes ahead with his policy, interest rates should go up.

Frank Cramer :
And stocks will get hurt ?

Jean Jacques Chenier :

Definitely.

Frank Cramer :
And if Trump is unable to go ahead with his pro-growth agenda ?

Jean Jacques Chenier :

The markets will be disappointed. Markets are very impatient and thye get disappointed easily.

Franck Cramer :
So should investors start to short the US Stock Market
Jean Jacques Chenier :
I don't remember who said that the Market can stay irrational longer than you can stay solvent, so
there is no point to fight the trend. Better wait the market start to signal that it is tired. Fyrthermore,
the seasonals will soon turn negative. I'll go with the old saying : Sell in May and go away . And
for more aggressive traders I will build some short positions starting in April expecting for a 7 to
8% correction during the summer.

Franck Cramer :
Thank you, Jean Jacques Chenier.