Hendry was one of the few money managers who made money in 2008 during the financial crisis; his firm made 50% returns.
During the Q&A Hendry was asked about his updated views on gold. He said, "I am long gold and short the S&P."
Hendry noted that the intervention of QE in 2009 has made this pair trade less predictable than in years past. Despite Hendry's relative bullishness on gold, he is petrified of owning gold mining stocks.
"I am long gold and I am short gold mining equities. There is no rationale for owning gold mining equities. It is as close as you get to insanity. The risk premium goes up when the gold price goes up. Societies are more envious of your gold at $3000 than at $300. And there is no valuation argument that protects you against the risk of confiscation. And if you are bullish gold why don’t you buy gold ETFs, gold futures or gold bullion.”
Hendry's last words of advice to the audience were:
"I have resigned from the professional undertaking of coin flipping. I am not here to tell you where gold’s going to be. I have no idea. That’s my existentialism. I am a student of uncertainty, I have no idea where the stock market is going to be. So when I am creating trades in my portfolio for my clients, I am agnostic. I just want to enhance the probability that I make money come what may."
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