HUGH HENDRY: A Profound Market Moment Is Coming In The Next Few Years

hugh hendry milken global conference 2012

Photo: Milken Institute/YouTube

Hugh Hendry, CIO and co-founder of Eclectica Asset Management, waxed deeply bearish about the state of the global economy in a panel at the Milken 2012 Global Conference yesterday.While acknowledging the fundamental strengths of the U.S. economy, he told attendees that the markets are about to reach a disastrous moment. “I think we are single-digit years away from the most profound market clearing moment,” he said, “A 1932 or a 1982, where you don’t need smart guys or girls, you just need to be there.”

Hendry elaborated on how this might happen:

To create the market clearing process that I fear is within reach I would tantalize or fear [sic] you with the nation that that we could see a hard landing in Asia, coinciding and indeed being encouraged by the problems in Europe. And if you get those two events colliding, and given the lack of protection in such a scenario in Asia, then you would have another profound dislocation, and that’s the point where you reach the bottom, and you don’t need wise guys, you just need courage.

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Watch Hendry participate in the panel “Is It Time To Invest In Europe?” at the Milken 2012 Global Conference yesterday:

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