Friday, 22 July 2011
2012 - We Were Warned
Not the Mayan prognostication of planet armageddon (whilst they had their cheeks stuffed with coca leaves), but financial chaos, the GFC continued after a quick break allowing govts to get underwater in debt.
Now that the Eurobuffoons have kicked the can into 2012, its time for a perspective post.
-Dalio is a “macro” investor, which means that he bets mainly on economic trends, such as changes in exchange rates, inflation, and G.D.P. growth.
-In search of profitable opportunities, Bridgewater buys and sells more than a hundred different financial instruments around the world—from Japanese bonds to copper futures traded in London to Brazilian currency contracts—which explains why it keeps a close eye on Greece.
-In 2007, Dalio predicted that the housing-and-lending boom would end badly.
-Later that year, he warned the Bush Administration that many of the world’s largest banks were on the verge of insolvency.
-In 2008, a disastrous year for many of Bridgewater’s rivals, the firm’s flagship Pure Alpha fund rose in value by nine and a half per cent after accounting for fees.
-Last year, the Pure Alpha fund rose forty-five per cent (!!!), the highest return of any big hedge fund. This year, it is again doing very well.