Hedge fund investing great, Paul Tudor Jones, founder of $10.8-billion Tudor Investment Corp. says the current rally is a "bear market rally," in his latest letter to investors.
Bloomberg: Tudor Investment Corp., the $10.8 billion hedge-fund firm run by Paul Tudor Jones, said equity markets could decline later this year, creating buying opportunities.
Slowing growth in China and the return of front-page stories on swine flu may be “further catalysts for global equity markets to pause in September,” the Greenwich, Connecticut-based firm said in an Aug. 3 client letter, a copy of which was obtained by Bloomberg News.
Tudor said the 47 percent gain in the Standard & Poor’s 500 Index of the largest U.S. companies since March 9, when it fell to a 12-year low, is a “bear-market rally.” The index topped 1,000 for the first time in nine months this week after companies reported better-than-expected profits.
“Impressive counter-trend rallies are a feature, not an oddity, of secular bear markets,” Tudor said. “We are not inclined to aggressively chase the market here. Many doubts remain about the sustainability of this recovery, most prominently the weakness of household income growth.”
Read the whole article here.
Source: Bloomberg, August 6, 2009, Saijel Kishan
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRxNALRApIoY
(h/t: Simoleon Sense)
