*UPDATE: Boesky denies that he made this bet and the story is no longer accessible on Asian Insider web site. (But if he had, he would have been right.)
Asian Insider reports that a Hong Kong fund manager has promised to take a naked lap around the city if Shanghai stocks end lower this year.
What a cocksure conviction.
Aaron Boesky, the chief executive of Marco Polo Pule-dipre Investments (and Ivan’s cousin) apparently told Asian Investor that the Shanghai index will bottom out next month and end higher this year than it is now. If it doesn’t, he’ll run around Hong Kong in socks and underwear (so it’s not quite a naked lap, but close enough for someone who isn’t still in college).
The prediction he’s betting his pants on is this:
‘Shanghai has wrongfully been punished and has been the worst-performing market in the world this year except for Greece,’ Mr Boesky said. ‘Last year’s peak wasn’t a bull market but an upward correction in a bear market.’
So, he reckons:
- Shanghai will leave the bear behind in the third quarter of the year and enter a bull phase that may last a year or more.
- The market there is near its lowest-ever valuation, at a time of strong growth in profits and the general economy.
Now we’re torn. We want this to happen because it’s funny but also don’t want him to be wrong because he’s putting himself on the line for the good of the market.