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Money managers under the microscope
from Global Investing:
Permabears are coming out of hibernation
After a 40-percent gain, the rally in world stocks might be losing momentum.
For permabears who live on doom and gloom to make money this is just a blip which is going to end in tears.
David Tice, a 20-year veteran short seller who manages Federated Investors' $1 billion short fund, says we are in for a secular bear market which is going to last for 10 years.
"I've never more been convinced than anything in my life that this is a suckers rally," Tice says.
He says short funds -- which borrow stocks to sell to buy at a lower price -- are negatively correlated to stocks and risky assets, allowing investors to diversify their portfolio.
