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Buy Gold, Sell Stocks Is the ‘Trade of Century’ Says One Hedge Fund
It’s only a matter of time until the bearish bet pays off big, according to Crescat Capital LLC. While the Denver-based firm has only about $50 million under management, it has a history of outperforming the S&P 500 Index -- with its Global Macro Fund returning 41 percent last year alone. Now the investment company says it’s ready to capitalize on an end of the economic cycle as indicators warn that a recession is imminent in the coming quarters.
U.S. economic data is deteriorating and inversions remain across the Treasury yield curve, the hedge fund pointed out. Measuring multiple yield spreads across the curve from Fed Funds to 30-year Treasury bonds, Crescat found that almost 45 percent of the curve is inverted.
“Soon the buy-the-dip mentality and bull-market greed will turn to fear. Selling will beget more selling. That’s how bear markets work,” Crescat wrote. “There is so much more ahead to profit from the short side of the market. The bear-market rally is running out of steam!”
DYI: very
rarely do I agree with hedge fund managers.
However the description from the article gives me the impression that
this is a standard investment manager that is simply managing an aggressive
growth fund. Nevertheless DYI is along
the same path of thinking.
Updated Monthly
AGGRESSIVE PORTFOLIO - ACTIVE ALLOCATION - 03/1/19
DYI
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