Nice to know that I am not the only one out there who manages money and calling into question the very structure of this rally, recovery, and our system. Good article in the WSJ about a couple hedge funds out there who continue on the lonely road that this whole rally is predicated on smoke and mirrors.
From the Wall St. Journal
Hedge-fund manager Peter Thiel is suffering, not because he lost money in the downturn, but because he missed the rebound.
Mr. Thiel, a billionaire co-founder of online payment company PayPal and an early investor in Facebook, thinks the economy is far from recovered and has bet with the bears amid the relentless rally. His fund has seen double-digit declines as other hedge funds have racked up gains.
"The recovery is not real," he says. "Deep structural problems haven't been solved and it's unclear how we will create jobs and get the economy growing again -- that's long been my thesis and it still is."
The contrarian view puts Mr. Thiel among a group of investors with impressive track records who are holding out, unwilling to buy into the notion of the economy's rebound.
"I have rarely been so convinced that the next broader market move is down," says Mr. Bornstein, who avoided most of the market's troubles last year. "The problem is that governments do not create income or wealth, and current stimulus equates to a future tax liability. That will become a major concern in mid-2010 when the stimulus is done."