Fund Guru Odey Warns Against China Dependence and Coming Recession

March 9, 2015 Debbie Jacobs Economic Barometer

Crispin Odey courtesy of Insider Monkey

Crispin Odey courtesy of Insider Monkey

Crispin Odey, one of the world’s most respected hedge fund managers expressed concern that economies that depend on China for their income are on the path towards recession. He further cautioned that central banks will not be able to save these economies since their supply of policy tactics have already been played out.

Odey is the founder of Odey Asset Management, a London-based firm, which has bought short positions on Australia in keeping with his bearish view of China’s growth potential for the near future. He has shorted Genworth Mortgage Insurance Australia and Fortescue Metals Group, a sign that he is anticipating a fall in their share values. He also expects the Australian dollar to plunge. Odey said that he is anticipating that banks in Australia are about to encounter “a bad time ahead of them.”

“China is everything to Australia in lots of ways,” Mr Odey told The Australian Financial Review.

Australia, China, Crispin Odey, recession, short positions,

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