Sunday, June 7, 2009

Amazing Michael Steinhardt Video

If you watch or read nothing else over the next few days, I implore you to spend 25 minutes watching this interview with Steinhardt. This is the first time I have seen him speak so extensively and I am incredibly impressed by his candidness and thoughtfulness. Here are some topics he discusses that I think are very relevant to the current investment climate:

1. His perception of the current stock market rally
2. His expectation for sustained and lasting returns in the equity markets
3. What both younger people with excess cash and older people without substantial liquidity should invest in going forward
4. His feelings about the "ugliness" that has plagued Wall Street over the last few years and his concern that we have not really learned any lessons as of yet
5. His fear that despite all the change rhetoric from the Obama administration, people do not appear willing to accept short term but necessary pain so that the entire economic system can function in the future
6. He discussed the role that hedge funds should play in light of the Madoff scandal and recent returns that indicate that very few managers were actually hedged to protect against downside
7. A Jack Bogle-like commentary regarding the lack of fudiciary obligation that he sees among most of today's money managers

(Hat tip to Trader Mark and Guru Focus)