Hugh Hendry: 10 Years Are Enough To Create A Cult In Capital Markets4 June, 2011, 4:05. Posted by Zarathustra
Tags: Gold, Hugh Hendry, US dollar
Digging out some pretty old but interesting stuff, I found this interesting panel discussion with Marc Faber, Maria Gordon, Hugh Hendry, Scott Minerd, Russell Napier, Nouriel Roubini, and Nassim Taleb.
The two Scottish men (Russell Napier and Hugh Hendry) are the most interesting part, with bizarre and ridiculous ideas from Russell Napier (if someone gives you a US Treasury, give it back to him. Don’t accept them even for free!).
Of course, Hugh Hendry is always interesting to hear because of his intellectual wisdom (and the fact that he is philosophical). One part of his discussion (43:05), he mentioned the following thing regarding safe investment as he disagreed with Nassim Taleb and Marc Faber:
If you want a definition of safe harbour, safe investment, I think it only has safety if it has a degree of contentious nature to it. That’s why I worried, there’s nothing contentious in wanting to short treasury bonds, there’s nothing contentious in wanting to short the dollar… Religion is a function of repetition and a passage of many many years. 10 years is effectively sufficient to create a cult, a cult of belief, in capital markets. And we’ve had 10 years where the dollar has sucked. And the opposite of that, is antithesis: gold has been phenomenal. You have, 10, count them, 10, 10, 10 consecutive up years in gold… it’s not contentious. Emerging market is not contentious. The formidable strength of the Chinese is not contentious.
In short, his rule for the safe haven is that “the most dangerous place is the safest place”.