Hugh Hendry: June 2009 Letter
Monday, June 29th, 2009Hugh Hendry: June 2009 Letter
Here, below, in its entirety is Hugh Hendry’s latest letter to investors. Its both enlightening, and highly educational, as the outspoken and brash Hendry has a great handle on market history as well as the English language. Hendry, founder of Eclectica Asset Management, is one of the hedge fund industry’s true luminaries, and often goes out of his way to argue his convictions as well as make his bets publicly known, and while his theses often get tested, as does his durability, he has yet t
How long can the Dollar Last as the World’s Reserve Currency?
The big question is how long can the dollar last as the world’s reserve currency? Needless to say, that is not an easy question to answer. We recently called the top on the dollar at 89.50 on the USDX. The USDX is six currencies versus the dollar on a weighted basis. More than a year ago the dollar hit a low on the USDX at 71.18. A phenomenal rally ensued from that level expedited by de-leveraging and the closing out positions within the carry trade. A good example of the carry trade was when a
Words from the (investment) wise for the week that was (June 15 – 21, 2009)
Caution last week crept back into investors’ vocabulary for the first time in more than three months as they faced up to President Barack Obama’s plan to reform the US financial market regulations, weighed the prospects of a global economic recovery and whether the “green shoots” needed more monetary water, and also started pondering the second-quarter earnings season. As risk-taking moderated, profit-taking on equities and commodities set in after a colossal advance since early March. Governm