Hedge fund manager Kyle Bass is on CNBC right now.
His comments are always interesting and worth following.
First up: Why he’s not interested in equities…
For one thing, he prefers productive assets. And he also warns that in the even of hyperinflation, it’s meaningless if your stocks go up. Zimbabwe’s stock market had an amazing decade, and you’d have still lost all your money.
He’s talking a lot about quantitative easing, and the “zero bound”, where lower rates can no longer spur more credit demand.
“I’m not sure if you printed $5 trillion whether that would spur more borrowers to borrow… all that might do is debase the currency.
We’re close to a bottom in some categories, but there have been 28 housing busts in OECD countries, and they usually last 6 years, though historically the majority of the declines came in the first four years.