Hedge fund managing partner, Kyle Bass, visited CNBC’s ‘The Strategy Session’ on Tuesday 17th August, 2010 where, for being a radical thinker, he assessed his market outlook and shared some investment advices.
It was really a worth watching interview as Kyle Bass, who had been credited for making quite a few ‘doom & gloom’ calculations on the collapse of the sub-prime mortgage market that ended up coming true in the long run, was seen without having upbeat outlook on where the world is heading monetarily
During the show, when he was asked about his opinion by David Faber, who interviewed him, on the current state of the world economy, Kyle Bass said” given my outlook on the world, I don’t know how you can be long stocks”!
Kyle Bass, who feels the ever declining economic conditions in Europe are now out of control, also said “in terms of comparison of the GDPs of both economies, the banking system in Europe is substantially more leveraged than that of the United States”.
It felt like Kyle Bass was of the view that the European bank stress tests were of no value and a restructuring of European debt system will have to occur, only if they want things to improve.
Well what he said regarding the stock market, might be of great importance for a common man, but apparently not for the big giants of stock market who are of the view that although, Kyle Bass is long in several US investments and likes US high yield debt in the form of corporate bonds, however he is not long enough in the stock market!
Kyle Bass
