Crispin Odey says he feels lonely betting against growth in a letter to investors.
The hedge funder behind Odey Asset Management has also warned that US rate rises are done and that he has concerns about subprime auto lending, Bloomberg reports.
“To be bearish feels lonely, despite the fact that the reflationary story of the past year looks difficult to sustain and auto-loan lending has joined a long list of risks, along with Trump and Brexit,” Odey told investors.
But he says equity markets feel vulnerable.
“The Great Reflation was responsible for a re-rating of stock markets. If all we have left is the central bank’s bond bubbles, that may not generate enough growth to support prices.”
On Federal Reserve policy, Odey says there will be no more rate rises.
“The government bonds have already guessed Yellen’s mind.”