Rational Advisor

Lee Ainslie’s Maverick Capital made roughly 50 per cent of its 2007 returns by shorting financial stocks, but the firm expects the sector to reverse course this year. In his keynote address at the GAIM conference at Boca Raton, Florida, limited partner Steven Galbraith said that financial services companies are probably a ‘quarter away from the bottom’. The USD12bn firm is now ‘cautious’ as regards emerging markets, which are ‘priced to parity with developed markets’ despite higher risks.

INteresting this manager believes we are a quarter away from a reversal in Financials, and he has reduced his emerging markets exposure - this does tie in with all the other talks that I have heard around Financials.

Wether we like it or not, Financials (Banks, nsurance COmpanies) are stalwarts of all economies, and a necessary industry group.

There are alternatives for OIl, there are alternatives for Gold, there are also alternatives for countries - but everyone needs their Financials - it’s a s necessary as food - try not to deal with anything to do with Financials for a week - so, how hard it is.

Rational

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