Posts Tagged ‘Dominic Frisby’
Hugh Hendry Interview: Invest in Long Government Bonds
Tuesday, November 11th, 2008
Hugh Hendry, the brilliant, brash and outspoken and eloquent CIO of Eclectica Asset Management, one of the UK’s most prolific asset managers discusses global markets and is investing in long-term government securities in the US and UK. Dominic Frisby, of Money Week and Commodity Watch Radio conducts this interview, which was recorded on November 1, 2008.
Here is a summary of some of Hendry’s thoughts:
- the present environment is all about the return of your capital, not return on capital.
- he is intrigued by government bonds and bets that interest rates will be cut further than people anticipate at the present time.
- interest rates will come down to unprecendented levels but it won’t make a difference.
- monetary policymakers will be pushing on a string.
- Hendry has been investing in long term US treasuries
- he is profoundly bearish on commodities, for now
- He believes that gold will drop further to below $600 as a result of the deflationary pressure that we are facing from the fixing of the system, then as a result of all the stimulus, we will face profound inflation. When long-term bond yields drop to around 2.5% that’s when you want to own commodities. That’s when he’ll back the truck up for gold, the big 16 oz. bars.
- For now Hendry will place his bets on deflation and falling long term interest rates.
If being leveraged means shorting cash, then deleveraging means buying cash, and he’s afraid the deleveraging is far, far, from over, because debt levels are still very high at this point. That means the dollar will continue to rally on the resultant repurchasing or short covering of the dollar. The rallying dollar, and ongoing asset liquidation is deflationary for now.
Hendry’s case and outlook is deeply compelling and worth taking seriously.
The second part of Dominic Frisby’s interview is with Dr. Francis Claessens of Peers, who tells us what the super rich have been doing with their money. Claessens leads WealthPeerGroup.com, a peer group that meets on a monthly basis to discuss financial issues. Minimum entry to this group is investable assets of £5-million ($8-million). This too is very interesting, i.e. if you’re interested in what’s worrying the very HNW investor these days.
Listen to the entire interview here:
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Tags: Amp, Blog, Claessens, Commodities, Commodity, deflationary pressure, Dollar, Dominic Frisby, Eclectica, Eclectica Asset Management, Gold, Government Bonds, government securities, Hugh Hendry, inflation, interest rates, interview, Markets, Monetary Policy, podcast, Rally, risk, Term Bond, UK, Value, Video
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New Audio Resource at GreenLightAdvisor.com
Saturday, November 8th, 2008
Now you can listen to the Investment Outlook and Commentary from Bill Gross (PIMCO), Vanguard Funds’ Portfolio Managers, and others on GreenLightAdvisor.com’s Audio Resources page.
This month, Bill Gross presents his latest investment outlook, Kenneth Volpert from Vanguard discusses the Credit Crisis, and Dominic Frisby, from MoneyWeek interviews Hugh Hendry of Eclectica Asset Management.
Enjoy!
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Tags: Bill Gross, Blog, Credit, Credit Crisis, Dominic Frisby, Eclectica, Eclectica Asset Management, Hugh Hendry, interview, PIMCO
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Audio Resources
Thursday, November 6th, 2008
Commodity Watch Radio Hosted by Dominic Frisby, MoneyWeek
View From the Markets
Audio blog of Doug Tengdin, CIO, Charter Trust Co.
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Tags: Bill Gross, Blog, Carp, Chart, Commodity, Desc, Dominic Frisby, FT.com, Markets, PIMCO, podcast, risk
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