Crispin Odey Goes Bearish, Warns Of Global Economic Shock

It was a frustrating year for Crispin Odey, as he thought his absolute return fund “gave away performance.” Who could blame him. He was short 10-year Treasury, costing him -4.87 percent on the year.  Frankly, many watching the yield curve have been stunned by the numbing stimulative effect that central bank policy has had on free markets. This is one of those trades that, in highly correlated portfolios, has been the equal of “the market can stay wrong longer than you can stay solvent.”  Odey also lost -2.95 percent on Gilt positions, as the spreads between the U.S. and Europe have been more than illogical.

Crispin Odey hates being wrong and losing money

“We don’t mind losing money when the...