Money managers under the microscope
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.
A controversial call from hedge fund veteran Alan Miller.
The ex-New Star CIO, now a partner at Spencer-Churchill Miller Private, warns that the most dangerous asset to buy is gold, which is near a 3-week high of $1,128 an ounce.
“I realise that I will be burned at the stake for being a heretic but the most dangerous asset must be gold,” he writes.