Hugh Hendry, co-founder and CIO of Eclectica Asset Management, in a panel discussion at the Milken Conference on May 1, gave his outlook on the euro, U.S. dollar, German market, and when we'll witness the "most profound market clearing moment." Here are a few notable quotes from the video (embedded below).
"Germany has operational leverage (Siemens): "Income within Europe is shifting. It's being redistributed. It's being redistributed from the financial creditors, think the banks. And let's keep it local like Germany. The trade really, is you want to be short the financial sector and you want be long the export sector. Because I think we all agree that where we're heading for is probably euro parity with the dollar if not going below that, which is a profound economic advantage to what are already super competitive businesses. And of course that only happens if we get more financial anarchy, and of course that's going to help your short position."