Hedge-Fund Manager Crispin Odey Says It’s Now More Likely the Market Will Crash

Crispin Odey, who made money for a second straight month by sticking to bearish equity bets, said the chance of a market crash is rising as growth slows and the Federal Reserve normalizes interest rates.
The credit cycle boosted by loose monetary policy has peaked and there’s a widespread slowdown in the auto, commodity, industrial and retail sectors, Odey wrote in a letter to investors. Unlike previous dips since the financial crisis, central banks aren’t responding by printing more money.
‘This time they are doing the reverse,’ which is likely to exacerbate the negative trend, the London-based hedge fund manager wrote. ‘All this sits very uncomfortably with the fun being felt in the stock markets. When I look at the move up since Trump’s election as president, I detect the walk of a drunken man.”
A spokesman for Odey Asset Management, which manages $6 billion, declined to comment.

This post was published at bloomberg