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.

LOOKING AHEAD: BREMMER: These Are The Countries That Will Win And Lose In The New Global Paradigm >

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

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at