Pimco’s Gross Says Fed May ‘Hint’ at QE3 at April Meeting
MOST HEDGE FUND MANAGERS AS DUMB AS A BOX OF ROCKS:By Nikolaj Gammeltoft and Whitney Kisling - Mar 26, 2012 3:25 AM ET
Hedge Funds Capitulating Buy Most Stocks Since 2010
Hedge funds, en masse, were shorting the market during this last bull run as they were convinced the economy was mending and the Fed would be forced to remove stimulus. Meanwhile, the Big Banks, who dictate Fed policy - as they own the Fed - were ratcheting up bets on the market - as they understand that they themselves are bankrupt and must survive off freshly printed infusions from the Fed which will continue ad infinitum until the currency collapses. So they know the Fed can never stop printing. And they in turn will plough the money right into the risk markets in order to suck all the capital out of the system before it collapses. Their victims are the public at large - including most hedge funds.
So how can most Hedge Funds (allegedly sophisticated markets pros) be so stupid? Simple: most Hedge Funds are run by the same money managers that work at pump and dump shops like Merril Lynch, Prudential, Morgan Stanley etc. These are guys one step removed from the insiders at JP Morgan and Goldman Sachs who own the Fed. These are guys who make money by convincing the less sophisticated to give them money that they can then manage into oblivion, while charging fantastic fees.
Of course top Hedge Funds, with whom you can't invest, like George Soros and John Paulsen etc are betting on gold and financial collapse. They're not running to stocks here at the very top. But their funds are closed anyway, so that doesn't help you.
But one thing is for sure: Bernanke will keep pumping money into the banks until money itself collapses. And until money collapses stocks will continue to float higher. But betting on that float is like betting on the last chocolate that will explode the guts of Monty Pythons' Fat Bastard.
After the explosion only gold will retain value.