Hugh Hendry: My $2 billion short on Japan

Hugh Hendry, of Eclectica Asset Management, has just visited Japan and what he found there was a booming economy. So why has he just placed a $2 billion short bet on the 10-year paper of Japanese corporates? Mr Hendry explains all in the King World interview below:

His complex technical answer is beyond a simple annotation and requires careful attention as it spins through an eclectic mix of contrarian ideas, but is still worth listening to despite that.

Mr Hendry finishes with a discussion of what he believes is a forthcoming recession in the western world combined with a global bond bubble.  Concluding with precious metals, Mr Hendry says he prefers to invest in assets which are more contentious than the current state of gold, where he believes the gold market has regained some of its once-lost legitimacy. He does though believe that there will be a large price move, in gold’s current phase, and recommends some purchase of physical metal to protect yourself from any potential hyperinflation created by the politicians, suggesting a figure of between 5% and 10% of your assets for this purchase.