“Hedge fund manager Hugh Hendry expects there will be one more “washout” in the market that will create once in a generation buying opportunity for risk assets.
Hendry also believes the Chinese stock market is effectively a casino that only benefits insiders, and the rest of us have no reason to invest in it.
“This might be the year everyone else notices this; the year panic over Chinese economic growth comes to replace the market’s morbid fascination with the travails of the European continent and the year in which we see that the U.S. is not giving way to China in terms of global economic leadership,” Hendry wrote in a letter to clients that was published in part by the Business Insider.
“There is a near consensus that China will supplant America this decade,” says Hendry. “We do not believe this.”
“We are more bullish on U.S. growth than most,” Hendry says. “The momentous nature of recent advances in shale oil and gas extraction and America’s acceptance of the unpleasantness of debt and labor price restructuring looks to us as if it is creating yet another historic turning point.”
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