Money managers under the microscope
This year’s stock market rebound has turned into a bubble, or at least that’s the view of closely-followed hedge fund manager Crispin Odey.
Odey, who called a bull market back in April, reckons quantitative easing has fuelled investors’ desire to get out of cash and government bonds and into real assets, leading to a stampede.
However, there is little sign this bubble is going to burst in the immediate future and Odey reckons these conditions could continue until the end of the year.
For now at least, “everyone should enjoy it”, says Odey, whose European fund rose 6.5 percent in August, taking year-to-date gains to just under 47 percent.
Plenty of fund managers have been predicting a rally in stock markets after the sharp drops seen last year and early this year, but most have expected it to be no more than a bear market rally.
However Crispin Odey, one of the UK’s best known hedge fund managers with a pay packet to match, has stuck his head above the parapet and said he thinks the recent rebound in stock markets could be the start of the next bull market.