Odey: Markets Do Not Stay Stupid Forever

For a fundamental analyst, it is difficult to determine the exact date of a “market value readjustment.” But counter-trend icon Crispin Odey says there is a logical method to determine when such potential disruptions are on the horizon. And he currently sees such issues on the horizon and has adjusted the portfolio accordingly.

In part, his logic to stay out of the perceived overvalued stock market is negatively impacting fund performance in the short term, he acknowledged in a July letter to investors reviewed by ValueWalk. But Odey points out “markets do not stay stupid forever,” it’s just a matter of when they realize the stupidity and adjust for the miscalculation.

Also see hedge fund letters

Logical fundamental value metrics...

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