|
Komfie Manalo, Opalesque Asia: Anthony Limbrick, whose 36 South Capital was one of the few hedge funds which made money during the selloff in August, told hedge funds to prepare themselves for a new era in increased volatility as the recent market turbulence is a just a preview of what is to come.
Limbrick said the signs are everywhere, including an expensive U.S. stocks and emerging markets plaguing developed peers for years to come, reminiscent of the Asian financial crisis of the 1990s, reported Bloomberg. Limbrick said that since 2013, he has already forecasted trouble brewing in the developing economies.
"It may well be 'sell the rumor, buy the fact’ into the Fed meeting with stocks initially rising, but how long that relief rally lasts for is an important question," said Limbrick, and added "Markets may have an upward bias for a while, but we’d expect to see another leg down."
He explained that it is the best time to sell equities when applications for unemployment benefits hit rock bottom, because historically, this signals the Feds to raise interest rates.
Limbrick continued, "When the consensus is built around one side of the market, then it’s vulnerable. That was one reason we started to get confident that a low in volatility had been made ahead of this summer."
36 South Capital, a volatility hedge fund, ...................... To view our full article Click here
|
RSS
