Julian Robertson Interview on CNBC
Julian Robertson of Tiger Management fame was interviewed by Erin on CNBC. Here are some of the things he said:
-We are just about to go into a recession. The last 4 weeks of horrible stock market will have (negative) repercussions on the economy
-We will get “a doozey” of a recession. When Japan fell apart starting in 1990, at least they were loaded with savings. 80-85% of Americans are broke and will have to cut back spending
-He doesn’t think we will go into another Great Depression as the government has been intervening. However he thinks we will have 10-15 years of a poor economy before we have a good economy
-He thinks the government should guarantee bank deposit like Europe did, also guarantee inter-bank loans
-He will vote for McCain because he is a long-time friend and is also good on the environment. However he thinks Obama with his advisors of Larry Summers and Bob Rubin will be better for the economy
-His favorite trade is the “curve steepener.” He thinks the Fed will continue to be accommodative which will help the 2 year rates. However the Fed has no control over the 10 year and 30 year rates which will rise. Also the dollar will weaken. This trade acts as an inflation hedge
-He likes MA, AAPL, MSFT, BIDU, V, GS, and RYAAY on the long side. He is short copper