Marc Cohodes is one of the most feared short sellers on the planet. He explains why his artful profession is becoming increasingly tough, which stocks he is currently betting against and where he spots opportunities on the long side. He also has a clear opinion on the Wirecard accounting fiasco.
Michael Pettis, Professor of Finance at Peking University, says that Covid-19 has accelerated a row of problems in the world economy. Hopes of a rapid recovery, led by China, will most likely be disappointed, he warns.
Larry McDonald, publisher of the investment research service The Bear Traps Report, warns that this crisis is far from over. He spots growing tensions in the credit markets and thinks that large public borrowers like Italy and New York State are in need of massive bailouts.
Inflation never disappeared; it is only misstated. Its true definition would be the loss of purchasing power suffered by revenues not indexed to stock markets. This two-tiered purchasing power is bad for growth.
Louis Gave, CEO of Gavekal Research, does not trust the recent recovery of stock markets. The economic damage caused by the pandemic is too great, he says. He is betting on gold, Asia and individual technology stocks.
Fred Hickey, editor of the investment newsletter «The High-Tech Strategist», warns that the stock market is still in a bubble. The veteran investor says why he avoids red hot technology stocks like Amazon and instead bets his money on gold mining companies.
Jonathan Tepper, Chief Investment Officer of Prevatt Capital, warns that today’s unprecedented monetary stimulus programs make the financial system more vulnerable. He advocates a quick re-opening of the economy, and spots attractive investment opportunities in travel-related companies such as Expedia and Zurich Airport.
Bill Smead, founder of Smead Capital Management, is betting on a world after the pandemic. The value investor from Seattle anticipates a new boom in the US housing market, spots opportunities in Berkshire Hathaway and American Express, and explains why he’s avoiding allegedly safe names such as Coca-Cola and Procter & Gamble.
The investor and market observer is a harsh critic of central banks. They ran a monetary policy that was way too loose in the upswing, thus creating a huge mountain of debt. «We have forgotten that recessions are a natural part of the business cycle», he says in an in-depth interview.
Jim Grant, editor of «Grant's Interest Rate Observer», argues that ultra-low interest rates and record-high debt are the main cause of today’s unprecedented market turmoil. More than ever, he’s betting on gold and mining stocks.
The recent market plunge was short sellers’ paradise. Is it an offence to make gains on the back of a disaster? The point is, attempts at banning them, let alone closing markets, are misguided and can’t be warranted.
In deciding on possible countermeasures, residents of Western democracies often hear only two opposite perspectives: Is the priority to minimize the loss of human lives, or to minimize the impact that the countermeasures might have on the economy? Even the simplest cost-benefit analysis suggests that the US government should be willing to spend up to $65 trillion and lock down the country to avoid extra deaths.