What do you do when you’ve been consistently bearish, and your once high-flying hedge fund is in the toilet? You pronounce the rally to be a fraud.
Peter Thiel, Clarium Capital manager and Facebook investor, has been whacked this year, so he tells WSJ: “The recovery is not real… Deep structural problems haven’t been solved and it’s unclear how we will create jobs and get the economy growing again — that’s long been my thesis and it still is.”
Other long-term bears profiled in the piece say the same thing, that things look worse than ever, or whatnot.
All that’s fine and well, but the real-ness of a rally, or the incongruity between short-term performance and long-term trends don’t mean very much, which is why investors have been fleeing Thiel’s fund. In the end, goes the cliche, “early”=”wrong” in the investing world.