Hedge Fund Managers Launching New "Hyperinflation" Funds

Mon, 1 Jun 2009

Hyperstagflation's Article of the Week:
http://economictimes.indiatimes.com/Opinion/Interviews/Fund-Managers-can-beco...

On Yahoo! Tech Ticker, Jon Najarian, co-founder of OptionMonster.com, responds to recent announcements that Nassim Taleb, author of "Black Swan", and John Paulson, famous hedge fund manager, are launching new funds specific for making bets on hyperinflation. Taleb's fund is called "Black Swan Protection Protocol Inflation Fund", and it will invest in commodities as well as stocks from the mining and energy sectors.

Najarian believes that it is premature to bet on inflation and thinks that what's pushing commodity prices, emerging markets and Treasury yields higher lately is the "reflation" trade (i.e. a re-embrace of risk by traders after the flight to the relative safety of the dollar and Treasuries in late 2008 and early 2009). Nonetheless, he views the current spike in energy prices as inflationary, and predicts the future use of liquefied natural gas as an alternative fuel. Najarian recommends gold (which he's long) and Treasury Inflation Protected Securities (TIPS) as inflation hedges.

"I'd much rather bet with Paulson than Taleb... There's no doubt that Paulson is the great trader... No more than 10% of my portfolio would I bet on inflation [right now], because I don't see that coming around until late 2010, except in energy," says Najarian.

"Black Swan Protection Protocol Inflation Fund" announcement:
http://online.wsj.com/article/SB124380234786770027.html

Category:

News & Politics

Tags:

• stagflation
• inflation
• stagnation
• deflation
• depression
• recession
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• financial
• GDP
• CPI
• PPI
• economics
• gold
• silver
• oil
• dollar
• money
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• Jon
• Najarian
• OptionMonster
• Nassim
• Taleb
• Black
• Swan
• John
• Paulson
• liquefied
• natural
• gas
• tips

[MrFrankBullitt]

I don't trust guys with ponytails.

[investornator]

thats a rat...PERIOD

[HillcrestCapital]

:45 "Paulson, great trader" wow, what a fucking idiot, Paulson's fund was down 52% in 2011.

[p0intblanksnipe]

Nothing this man says matters. He is talking in theoretical money, all stock market trades, all bank loans, and reserve notes are theoretical monetary transactions taking place over a computer. If you want to find the problem behind inflation look no further than capitalism, every dollar in your pocket is another dollar of debt. We must look behind the stock markets cryptic double talk to understand that the american monetary system is nothing more than one big scam

[BertGraef]

How much money do these morons need?

[Gudenfast]

@bearstearn3 Why?

[antonisprotopapas]

@Gudenfast nice to see someone actually knows what he is talking about. well said my friend.

I hate it when the media says bshit, honestly people, do your homework..who is this najarian guy anyway??

[antonisprotopapas]

@Gudenfast nice to see someone actually knows what he is talking about. well said my friend.

I hate it when the media says bshit, honestly people, do your homework..who is this najarian guy anyway??

[dave997]

that's a rat tail

[Scapone2001]

taleb was a trader for 21 years for some investment bank, its not like they would employ an idiot for 20 years, he must have done something right. Najarian and his brother and propogandists for CNBC and dont want to scare thier viewers into thinking thier is inflation ahead. Pony tails are only for women Najarian!