Paul Tudor Jones: This is a "bear market rally"

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:Ā  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 ā€œfurther catalysts for global equity markets to pause in September,ā€ 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 ā€œbear-market rally.ā€ The index topped 1,000 for the first time in nine months this week after companies reported better-than-expected profits.

ā€œImpressive counter-trend rallies are a feature, not an oddity, of secular bear markets,ā€ Tudor said. ā€œWe 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.ā€

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)

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