Wednesday, November 26, 2008

Plate tectonics - a shift from paper assets to real assets

Renee Haugerud, founder and principal of commodities global macrofund Galtere recently was ranked number two HF manager in the world by Trader monthly magazine. She suggests a tectonic shift away from paper assets (equities) to real assets (commodities) is taking place and although the fund is mostly deleveraged she expects a second chance for commodity investments.

"The first sign that you get that deleveraging is over is when the US dollar decouples a bit from the equity market. We have seen some signs of this in the last couple of weeks."

"This is like plate tectonics. This is a shift from paper assets to real assets. This new cycle could last a couple of decades."

She admits that she never was "a big gold bug", but foresees good times for the metal in the future:

"For the first time in a long time I think that gold could be a repository of value going forward."

click for video

source: Hedge Clippings

CNBC, Renee Haugerud, Galtere Ltd. principal/founder

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