With the mainstream financial media being overwhelmingly bullish, I make it my mission to bring you as much bearish news as possible. For one simple reason. My mathematical and timing work suggests that a bear market of 2015-2017 is about to kick in. Andy Redleaf, CEO of $4.2 billion hedge fund manager Whitebox Advisors, sees the same thing.
- “I think it is a truly scary time,”
- “We do not know exactly where all the credit creation of this cycle has gone. Certainly money sits idly as excess reserves, but just as certainly money that would not exist but for unconventional monetary policy has distorted prices and resource allocation,”
- “There are some parallels with the collapse in home prices which preceded the financial crisis,”
- “It strikes me as completely plausible that a further decline in the euro triggers a recession in the U.S.,” Redleaf wrote. “The U.S. has a bear market, high-yield spreads move to 1998 type levels (1,000-1,200 [basis points]), U.S. weakness and market tightening of credit probably make the recession global.”
And so on and so forth. I think you get the picture. It is easy to look back today and say that anyone with an ounce of intelligence could have seen the 2000 and 2007 tops coming. Yet, very few people did. Why? For the very same reasons most people today refuse to believe that yet another bear market is possible. Greed, following the crowd, perpetuating today’s market condition and, quite frankly, stupidity.
Yet Another Hedge Fund Manager Warns About Imminent Bear Market Google