Stephen Jen, of hedge fund SLJ Macro Partners, had some comments overnight, saying investors are too bearish on the global economy, citing “disinflation and indiscriminate fears of disinflation” being to blame:
- “The world just witnessed a 50% decline in oil prices, but the conversations and policy pronouncements around the world seem to be as confused and worried as if we had a 50% increase in oil prices”
- “To me, this has been a tremendous favourable supply shock that will boost consumption much more than it will curtail investment”
- “If oil price were to rebound sharply from here, would they become more bullish on the US economy and argue for rapid rate hikes?”
I couldn’t agree more. But maybe that’s just me (and him, of course).
Ohhh, just one point of contention … I would have put in more comments about headless chooks and such.
