Fund manager Crispin Odey has told investors the market is drunk as he stands firm in his bearish outlook in the face of rising markets.
In a letter to investors, Odey says markets have ignored central banks moves towards normalisation as growth slows, Bloomberg reports.
There’s a widespread slowdown in the auto, commodity, industrial and retail sectors, which central banks previously would have reacted to by printing more money, Odey writes.
“This time they are doing the reverse,” he says. “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.”
In the UK, Odey says he is worried about the pound’s “dangerous” drop and its impact on retailers already dealing with shoppers moving online at faster rates than in the US or Europe.
The Odey European fund gained 1.8 per cent in June benefiting from short bets, including Debenhams.
The returns from bearish bets will be a relief for Odey, who told investors last month he felt lonely on his view of the markets.