COMMENT: The chattering market – the silent economy
Mon Apr 16, 2012
The economy has no answers; it just makes massive data dumps… and even they are incomplete
Andrew Redleaf, founder and CEO, Whitebox
I was flattered when HedgeFund Intelligence recently invited me
to join a panel of fund managers to prognosticate about the
future of the economy. Alas, when I saw the questions I
realised my only possible response was: "Sorry, but I
don’t have a clue." Macro-economics is so alien to
how we invest at Whitebox that it has become a catchphrase for
us: "We don’t do macro."
The invitation, however, prompted me to rethink that phrase
because, of course, we do "do macro". A very substantial
portion of our returns over the years have been driven by what
most people would certainly describe as big macro calls. Those
calls, however, have never been macroeconomic calls. They have
been macro-market calls. There are big differences between the
two, the biggest being that calling the economy is flat-out
impossible while calling the market...
ISSN: 2151-1845 / CDC10004H
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