Macro Takeaways ~ market folly

Wednesday, August 6, 2008

Macro Takeaways

Courtesy of Commodity News and Mining Stocks, Salida Capital (a multistrat hedge fund that has seen compounded annual returns in excess of 50%) is out with some very simple macro bullet points that effectively summarize what we're witnessing.

1. The housing crisis in the US is deflationary
2. It will be met with unparalleled monetary and fiscal stimulus

3. The end result will be another round of reflation
4. This will eventually lead to an even more inflationary environment

5. Supply constraints on most commodities will keep long-term prices higher than consensus estimates
6. Hard assets will eventually get a re-rating as their earnings power relative to the overall market is recognized and as investors buy them as an inflation hedge.
- Courtesy Salida Capital Commentary For July 2008


Mark said...

Looks like they have 6 funds, but the oldest is at 50% for the duration - quite awesome - devoted to what else - "resource stocks".

I am curious how they have done the past 6 weeks!


... return the past 3 years (thru 07)

Looks like in Canada retail can get into it for $5k? Strange

But they are definitely talking their book :)