Bossman, J. Burbank, hailing from Passport Capital, issued a letter this afternoon which predicted a ‘repositioning’ of sorts and the beginning of a ‘liquidation’ that is bound to leave a mark.
“For both it will be a normal ending after decades of extending their booms,” Burbank said in the letter obtained by Bloomberg. “We think this is a time full of peril and repositioning that heralds either the start of a new market reality (i.e. inflation and too much liquidity) or the beginning of the liquidation.”
Then he gets into some heady stuff and puts the whole audience to sleep.
“The Fed policy response now seems to be a function of global growth concerns rather than domestic considerations,” Burbank said. “This essentially brings forth a period of global monetary policy convergence rather than the anticipated divergence.”
There will be “substantial” opportunities to make money once the “massive dose of central bank anesthesia wears off financial markets,” he said, adding that the dollar will resume rising “once markets embrace the fundamental truth of the consequences of divergent monetary policies.”
He really does walk around in that fucking fleece vest all day long, like a stereotype of some asshole hedge fund trader. I am especially delighted to post this ‘news’ on a day when the market buried the bears from whence they came.
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Welcome, Devil Dog Burbank, in that fucking fleece vest, LOL.
first funny sentence you’ve written this decade.
He’s the straight man. You are supposed to feed him the cues and follow up with the punch line.
Buy dips when Exodus or other favorite oversold signal flashes green.
There is a kick tail bull market underway, fear will lose.
Please tell me you are being sarcastic.
Fear only loses to greed, but with the January start, greed won’t win unless the strong bulls push new market highs.
Look at a 2-yeat S&P 500 chart: lower highs in July15, Nov15, Dec15, and April16. Which is more likely triple top or consolidation for new highs?
A damned good question:
Why is Freddie Mac Reporting a Loss?
http://www.acting-man.com/?p=44721
But the questioner doesn’t bother to look at the financial statements for the answer, deciding instead that there is some dark, hidden secret.
He’s a doofus.
It’s even easier than that. Just look at their press release:
“$1.4 billion (after-tax) estimated fair value loss driven by measurement differences between the company’s derivatives, which are measured at fair value, and certain hedged assets and liabilities, which are not.”
Their business is highly dependant on low interest rates. Instead of saying “F*** it, rates are low, no worries” (as Delta does with fuel…), they hedged against rising interest rates. Rates fell further, and their hedges lost money on paper.
Perhaps you could ask why their hedges were so aggressive ($4.5B in derivative losses *in one quarter*), but that’s as far as the story goes.
concur: He’s a doofus.