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Who's left to buy? Hugh Hendry turns bullish

  • "I cannot look at myself in the mirror," says Hendry at an investor conference. "Everything I have believed in I have had to reject. This environment only makes sense through the prism of trends."
  • "I have been prepared to underperform for the fun of being proved right when markets crash. But that could be in three-and-a-half-years' time."
  • Fully aware he may be ringing a bell as the last bear to throw in the towel, he tells the audience it would be well within its rights to sell. But for now: "Crashing is the least of my concerns. I can deal with that, but I cannot risk my reputation because we are in this virtuous loop where the market is trending."
  • ETFs of note: PRF, VV, SCHX, JKD, EQL, EEH, SPXH, TRSK, FSE, PXLC, FSU, FWDD, ALTL
Comments (4)
  • Nitin B. Sharma
    , contributor
    Comments (163) | Send Message
     
    One of the worst situations for a fund manager to be in. It's called:

     

    FOMO: Fear Of Missing Out

     

    Even the best hedge fund managers should be net long (7 out of 10 years, the market moves higher). Have conviction short ideas, but don't make your entire fund based on it.
    22 Nov 2013, 01:30 PM Reply Like
  • into dark shadows
    , contributor
    Comments (329) | Send Message
     
    Well, I have to admit as this has been my feeling also.So as Hugh is beating me to the exit I guess I will wait one more day(unless the Russell 2000 does close above its recent high) and see what the weekend brings. I have been destroyed by Bernanke and this perversion called the stock market. I may need to gather the few marbles remaining, to play another day, but if I were to go LONG, which I wont of course, look out below.
    I hope the fed sleeps well knowing they have destroyed all respect and FAITH in the markets for at least a generation or two. I was the BIGGEST cheerleader for the markets and have been in them since 1995, but you couldn't give me a stock today, either be long or short via an ETF, but to play the market and believe in buy and hold for the long term(Jeremy Segal) you should doubt your sanity!
    The transformation is nearly over, Harry Reid has made congress irrelevant yesterday and we are no longer in a REPUBLIC of the founders forming! The free market system has been killed!
    God save the Republic
    22 Nov 2013, 02:14 PM Reply Like
  • cyrus trask
    , contributor
    Comments (171) | Send Message
     
    Hendry isn't necessarily bullish; he's just resigned himself to the fact that he is fighting a losing battle. Seems like Julian Robertson did the same thing in the late 90s.

     

    But until grandma capitulates and puts the last of her "butter and egg" money into the market, the trend continues to be up.
    22 Nov 2013, 03:15 PM Reply Like
  • James Hanshaw
    , contributor
    Comments (1464) | Send Message
     
    I have read Hugh Hendry's beliefs for a long time and he has been wrong for a long time despite excellent foundings for his beliefs. I ignored him and plunged in in 2005 - out mid 2007, back in late 2008 - and have done quite well. Successful investors like Buffet told me trying to time is a mugs game. Now Hugh makes me think I should start timing my next exit.
    23 Nov 2013, 08:36 AM Reply Like
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