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Hedge Fund Presents Massive, Bearish Outlook On The State Of US Markets

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black bear

Morgan Creek Capital Management, an investment management firm with offices around the world, released its 2013 market outlook, entitled "Peering Over the Precipice."

The presentation was delivered at the North Carolina Bankers Association yesterday.

The slideshow presentation focuses on the three big risks facing the market: the Euro crisis, possibility of a downturn in China, and fallout from the Fiscal Cliff.

Of these three, the firm is most bearish on the U.S. economy -- to the point of predicting a recession starting in April. Morgan Creek believes that U.S. equities are overvalued, and notes that bear markets generally perform poorly in a post-election year.

The team is most bullish on precious metals and the Nikkei. In particular, they believe monetary easing will boost the Japanese market, and have a short-term target of $2,000 for gold.







See the rest of the story at Business Insider

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