Well I said if you wanted to be bearish you need problems in Europe. Euro down big today, German factory orders much weaker than expected, and Ireland spreads blowing out. The real question is if you take off exposure around 1080/1085 or not?
An interesting article from Bloomberg with some thoughts from Michael Burry. Remember he was the head of Scion Capital who made a fortune betting against the mortgage market. His story was told in Michael Lewis book The Big Short. What is he doing now?
Michael Burry, the former hedge-fund manager who predicted the housing market’s plunge, said he is investing in farmable land, small technology companies and gold as he hunts original ideas and braces for a weaker dollar.
When investors talk about a weaker dollar the question should always be against what? Against other currencies or against precious metals or all commodities?
This is what I have been complaining about for awhile.
Burry, who now manages his own money after shuttering the fund in 2008, said finding original investments is difficult because many trades are crowded and asset classes often move together.
“I’m interested in finding investments that aren’t just simply going to float up and down with the market,” he said. “The incredible correlation that we’re experiencing -- we’ve been experiencing for a number of years -- is problematic.”
There is also a couple of video interviews one of which can be found here.