Stagflation

W

wutangfinancial

That's my play.

Global stagflation. Short anything that relies on raw inputs to maintain margin. Long the inputs and the technology firms trying to improve efficiency and discover new inputs. Simply put, there is more demand than capacity for additional output. Money supply growth is simply an outcome....

No earth shattering analysis here. It's the onus of the trader/investor to best capitalize on this phenomenon. In any case, those with a global macro mandate will do better than any other strategy in the hedge fund universe, IMO.
 
^I have no beta risk...so I don't care.

Not that anyone cares about my "expert" opinion, and they shouldn't, since this is the internet-
But, here it is-
Why would you have any market exposure right now? Even the best quant funds stopped picking market direction correctly in the sub prime sell off-now's the time to do top down country/sector analysis and positively expose yourself to global stagflation through a careful construction of longs and shorts. In the past 6 months, that's pretty much the only strategy that's done well.
 
What inflation?

http://www.bloomberg.com/apps/news?pid=20601087&sid=a5VKSgb_vWKM&refer=home

Rio Wins 97% Ore Price Increase From Asia Steel Mills (Update1)

By Rebecca Keenan

July 1 (Bloomberg) -- Rio Tinto Group, the world's third- largest mining company, won a price increase of as much as 97 percent for contract iron ore from all its Asian steelmaker customers, matching an agreement with Chinese mills.

Asian steel mills will pay 80 percent more for Pilbara blend fines and 97 percent more for lump product in the 12 months that began April 1, the London-based company said today in a statement. Baosteel Group Corp., China's biggest steelmaker, agreed the new prices on June 23.

David_Gruen_to_the_Australian_Business_Economists-8.gif
 
Quote from Spectre2007:

sell sell sell..

the storm is upon us....
More...

I am beginning to think that you are right, and that these may be wise words of wisdom. We'll see in a few days, won't we?
 
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