consequences of the tantrum are not something that you want to live with and you give more candy even though you know that that is not a good long-term solution. That is where the Fed got stuck in and it worked as long as there was no inflation. Now that there's inflation, the Fed cannot do that anymore. And that's what the market is recognizing. Look, I am one who have said, no matter what you think of fundamentals, you should continue riding the liquidity wave. I've said this over and over again the whole of last year. I remember Leon Kooperman, a very famous and respected hedge fund manager, saying on TV that he was really worried about the markets and then he was asked, how are you positioned? And his answer was, I'm a fully invested bear. Yes, I'm a bear, but I'm fully invested because it's liquidity right now that is governing outcomes, not valuations. So people will ride that. Let me give you one last example if I may. At the end of 2007, a CEO of a major US bank came to see me (20/43)
You are viewing a single comment's thread from: