Money managers under the microscope
Stocks may have enjoyed a huge rebound this year (the S&P 500 is up 50 pct from its March low), but the rally is based on speculation, according to one hedge fund firm.
“The rally has been a dash for trash based on speculation,” he said, arguing that while stocks are back at pre-Lehman levels, fundamentals haven’t changed.
Only a week ago Crispin Odey, who had pointed to the start of a bull market early this year, said “markets are a little overbought and will probably have a pullback”.
Bullman is also downbeat on quantitative easing and thinks this could backfire as higher inflation works its way into the system, so has gone long gold.