For the better part of a year, a small band of investors and economists has been arguing that the torrent of grim news on jobs and the stagnating US economy is shrouding an immutable fact: The recovery is at hand – you just can’t see it yet.
But therein lies the opportunity for investors like John A Paulson, the hedge fund executive who made billions by betting on a housing crash, and Bill Miller, the mutual fund manager at Legg Mason Capital Management who is best known for his 15-year streak of beating the Standard & Poor’s 500-stock index.
The bad news bulls do not dispute that the relentless beat of lost jobs and sagging house sales represents a serious economic threat. But they argue that in many respects this avalanche of bad news has little bearing for a growing number of corporations that are making money by relying more on technology, borrowing at rock-bottom rates and increasing sales to galloping overseas markets in China, Brazil and India.
For more: Grim US economy: An opportunity in adversity? - The Economic Times
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