Money managers under the microscope
Noster stays cautious
Equities continue to steam ahead but at least one hedge fund manager is wary.
Noster Capital’s Pedro de Noronha is currently short the S&P 500, believing valuations are too high.
In addition, he sees a longer-term threat in the form of demographics: ‘baby boomers’ are now hitting retirement and will be selling equities to fund their annuity purchases, he argues.
His long position? Well, he’s defying Alan Miller’s warning and is long gold (in September he said it could go as high as $1,600).
Quantitative easing and buying by emerging market central banks should support it, he thinks.
(See also Gold – “the most dangerous asset”)