Hugh Hendry Goes Stock, Bitcoin Bull Retard: "Don't Tell Me The Valuation, It Is Trending"

Tyler Durden's picture




 

Everyone knows "you never go bull retard," but it seems Eclectica's Hugh Hendry, the hardiest of hardy Scots, has accepted that there is only one way for this farce to end (as we predicted back in 2009). As Investment Week reports, the bear-turned-bull has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”. Perhaps summing up the "trend-driven, QE-fueled" new normal better than anyone, Hendry added:

"I say to my team 'don't tell me the valuations, it is trending'... This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would.

It gets worse: Hendry is now chasing the biggest momentum trend of all, that of Bitcoin, which he now "expects" to rise to $1 million! As for his "hedge", don't laugh, 3D printing stocks...

Sigh.

We suspect, as he noted previously, he will be avoiding mirrors even more now. And yes, that this whole series now reeks of an Onion viral marketing campaign, is clear to everyone. Although sadly, we fear it is all too sincere, and a sad consequence of what happens when Bernanke's centrally-planned markets crush one after another talented asset manager and leave the E-Trade momo babies in charge.

Via Investment Week,

Eclectica’s Hugh Hendry has said he would buy into online currency Bitcoin if it were feasible to do so within his funds.

 

Hendry has bought 3D printing stocks as a play on trend-driven, QE-fuelled equity markets, and said the rise in the valuation of Bitcoin amounts to “the same thing”.

 

All US-listed 3D printing stocks are trading on at least 50 times earnings, but Hendry said he has little concern over the sector’s sky-high valuations.

 

"We are in 3D printing stocks. I say to my team 'don’t tell me the valuations, it is trending,'" he said, speaking at a Harrington Cooper conference at which he also revealed he is no longer bearish.

 

The power of those trends is such that Hendry said he would own Bitcoin if it was accessible on a regular exchange. The value of the volatile online currency passed $1,000 per coin for the first time last week.

 

“This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would. If I own 3D printing, it is just the same thing,” he said.

 

read more here

 

Of course, while Hendry's asset allocation may appear bullish, it is not from a sense of impending positivity - more of resignation...

Hendry added equity market fundamentals do not matter at a time when policy is misaligned, emphasising instead the ‘feedback loops’ created by US quantitative easing.

 

“There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational.

 

“We want to believe markets go up because the economy is improving, because corporate cashflows are improving. But when you get monetary disturbances creating loops, it does not really matter.”

Poor guy.

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Wed, 12/04/2013 - 15:19 | 4214559 lolmao500
lolmao500's picture

Well folks are so retarded, he might have a point there.

Wed, 12/04/2013 - 15:20 | 4214571 Dear Infinity
Dear Infinity's picture

And he did just turn bullish on the S&P. But it's all supply and demand anyways.

 

21 million coins, 6 billion people... you do the math.

Wed, 12/04/2013 - 15:28 | 4214591 flacon
flacon's picture

"Coins"? Invisible "coins". Now it makes sense.

Here, drink this potion it turns you into a monster man with coins. 

Wed, 12/04/2013 - 15:34 | 4214639 Pladizow
Pladizow's picture

“Men, it has been well said, think in herds; it will be seen that they go mad in herds, while they only recover their senses slowly, one by one.” - Charles MacKay

Is Hugh waking up to the new reality or is he joining a mad herd?

Wed, 12/04/2013 - 15:40 | 4214664 Oracle of Kypseli
Oracle of Kypseli's picture

One wilderbeast jumps to cross the river in the wrong spot and 750 follow and drown. NAT GEO.

Go ahead Mr. Hendry, jump and join the mad dash...

Wed, 12/04/2013 - 15:43 | 4214693 hedgeless_horseman
hedgeless_horseman's picture

 

 

Wed, 12/04/2013 - 15:44 | 4214702 tsx500
tsx500's picture

where is FONESTAR ??!!

Wed, 12/04/2013 - 15:46 | 4214719 Doña K
Doña K's picture

It's late at night in China

 

Wed, 12/04/2013 - 15:49 | 4214727 hedgeless_horseman
hedgeless_horseman's picture

 

 

"Bitcoin is teh...teh...teh...trending."
-Simple Hugh

Wed, 12/04/2013 - 16:23 | 4214746 TruthInSunshine
TruthInSunshine's picture

I do think this could be one of the true top calls - really - given how permabearish Hendry forever was, along with fellow permabears turning fulltardbulls.

Everyone Knows You Never Go Full Retard

Wed, 12/04/2013 - 19:08 | 4215469 James_Cole
James_Cole's picture

Lol nice to see a hedge fund genius getting paid to recommend ddd years late.

Thu, 12/05/2013 - 00:08 | 4216462 markmotive
markmotive's picture

What happened to the Hugh Hendry we all knew and loved?

Hugh Hendry, "God is a genius because he is a sloth"

http://www.planbeconomics.com/2013/04/hugh-hendry-god-is-genius-because-...

Thu, 12/05/2013 - 00:19 | 4216497 atomp
atomp's picture

Hugh Hendry has gone ON the reservation

Thu, 12/05/2013 - 00:30 | 4216530 fuu
fuu's picture

Holy shit. Hugh Hendry is Robotrader.

Thu, 12/05/2013 - 03:55 | 4216794 akak
akak's picture

I think Hugh just blowtorched his own reputation.

Wed, 12/04/2013 - 19:50 | 4215631 dracos_ghost
dracos_ghost's picture

Yup, methinks Hugh's phone lines are lit up with "REDEMPTION REQUEST LINE ..."

Wed, 12/04/2013 - 15:53 | 4214758 dryam
dryam's picture

Hmmmm.........I wonder what people might say when something is in a manic bubble?  I wonder if the statement "it could go to $1 million" has any significance.

Wed, 12/04/2013 - 16:01 | 4214796 fonestar
fonestar's picture

Simple question, if Bitcoin goes to $1 Million USD what share of FX trading will that be?

Wed, 12/04/2013 - 16:07 | 4214824 malikai
malikai's picture

Love me some zerohedge disinfo!

Wed, 12/04/2013 - 16:30 | 4214903 Matt
Matt's picture

Why doesn't Hugh just invest in some of the hardware manufacturers for bitcoin mining? They use pre-sales to finance their development, so they are quite low risk. I haven't looked, but there must be a few that are publicly traded companies. Whether bitcoin goes up or down, people have already paid in advance for non-refundable pre-orders of equipment that doesn't exist yet, to mine virtual currencies.

Wed, 12/04/2013 - 16:36 | 4214927 hedgeless_horseman
hedgeless_horseman's picture

 

 

Why doesn't Hugh just invest in some of the hardware manufacturers for bitcoin mining?

...and blow-molding equipment for plastic pumpkin farmers, too!  

Wed, 12/04/2013 - 16:52 | 4214981 Stackers
Stackers's picture

$1 billion bitcoin. you heard it here first.

 

Wed, 12/04/2013 - 17:02 | 4214992 MillionDollarBogus_
MillionDollarBogus_'s picture

Matt,  good point.

Hiring some out of work math & computer geeks to mine the stuff may be a better investment than buying it outright.

Or create a new crypto-coin and push the hell out of it, which seems to be the preferred method, with 42 different coin flavors.

The evil MLM wankers are probably behind all this...….bastards..!!

 

 

Wed, 12/04/2013 - 21:40 | 4215991 SonOfSoros
SonOfSoros's picture

This is hilarious since these folks are attempting to do what they are trying to escape from. 

REGULATION. By tracking and tracing, they are trying to be the government hoping to regulate and clamp down on theft. Ironic sheeps 

Wed, 12/04/2013 - 16:37 | 4214931 smithcreek
smithcreek's picture

Bitcoin?  At least with tulips you had some bulbs and pretty flowers.

Wed, 12/04/2013 - 18:31 | 4215348 RmcAZ
RmcAZ's picture

Whether bitcoin goes up or down, people have already paid in advance for non-refundable pre-orders of equipment that doesn't exist yet, to mine virtual currencies.

This sounds like such an intriguing investment... not to mention ASIC miners are as good as garbage once they have outlived their usefulness, since they can only be used for mining Bitcoin. These companies should be trading on the NASDAQ with at least $50B market caps.

Wed, 12/04/2013 - 19:31 | 4215555 Matt
Matt's picture

That's not true, once your hardware is too slow to mine Bitcoins, you can mine one of the hundreds of homebrew derivatives of bitcoin.

Wed, 12/04/2013 - 16:30 | 4214907 SWRichmond
SWRichmond's picture

Love me some Hendry sarcasm.

Wed, 12/04/2013 - 20:53 | 4215525 TheHound73
TheHound73's picture

Ron Paul: "Bitcoin could destroy the dollar" [CNN]

Pour all your wrath on Ron Paul, but just remember he's an old doddering fool.

Edit: Ah, I see Tyler picked this one up on another thread.

Wed, 12/04/2013 - 21:33 | 4215979 Spigot
Spigot's picture

"if Bitcoin goes to $1 Million USD what share of FX trading will that be?" - fonestar

It all depends on the percentage that are in play. If they were all in play then this would be the equivalent of $2 trillion, which seems to me to be about 50% of the FOREX flows ... but the real question is, what currencies would be displaced by BTC if so used? If the US$ develops a severe case of dumpem-itis, and the US$ flows drop by 90%, and the price in US$ for EVERYTHING goes up by 1000%, then one could see how BTC might be that bridge across which FOREX flows which used to be US$ denominated would be rechanneled in order to try to regain some stability.

Needless to say, the world would be a very, very different place that we know it now.

But one might as well ask this question: What is the price of BTC in German Reichsmarks, hmmm?

Wed, 12/04/2013 - 17:01 | 4215016 funthea
funthea's picture

Had to think where I heard that before... thats right, it was in 2005 when the experts said that the median home price in california would be 1.2 million by 2013!!!!!

Wed, 12/04/2013 - 17:06 | 4215035 whateverittakes
whateverittakes's picture

So were Tulips at one time...... 

Wed, 12/04/2013 - 15:50 | 4214730 Divided States ...
Divided States of America's picture

Fuckin Hugh Moron hes turning into...but I guess these markets will do that to people obsessed with playing with other people's money.

Just fuckin return the capital to investors, you Hugh Moron...like Seth Klarman is doing.

Wed, 12/04/2013 - 16:00 | 4214775 Paper CRUSHer
Paper CRUSHer's picture

Agreed,clearly the man has lost his mind.

Driven insane,he finally submitted to his keynsian masters.

Hardcore contrarian my ass!

Wed, 12/04/2013 - 17:15 | 4215059 Itch
Itch's picture

Look at what he does, not what he says.

Thu, 12/05/2013 - 02:59 | 4216754 Kirk2NCC1701
Kirk2NCC1701's picture

Maybe he and others like him have finally realized that there is no money to be made in his line of work, with permanent talk of a falling sky.

Maybe he can start a website that caters to angry people. It's a model that seems to work. One of the earliest guys to have figured this out and who turned his life of unemployment into many millions, is an AM talkshow guy by the name of Rush Limbaugh. Others have since tapped into the veritable "industry" of angry and mistrusting people, by providing a platform and meeting place for regular "therapy" (bitching) sessions.

At the end of the day such people have to ask themselves if such talkshows or web forums are making them richer or happier, or just its hosts. Something to think about.

Wed, 12/04/2013 - 15:48 | 4214732 drink or die
drink or die's picture

He's not whoring a bitcoin post, his mom must be making him take out the garbage or clean his basement dwelling.

Wed, 12/04/2013 - 16:04 | 4214803 fonestar
fonestar's picture

We'll be having the last laugh against you.  Most of you are just too plain stupid to understand abstract principles or Bitcoin.

Wed, 12/04/2013 - 16:18 | 4214860 johny2
johny2's picture

How many crypto currencies can be produced?

Do they have any inherent value?

Enoy the ride, and remember to take profits.

Wed, 12/04/2013 - 16:24 | 4214884 TruthInSunshine
TruthInSunshine's picture

SatoshiRubySteinDiamondSilverBerg will have the last laugh.

Wed, 12/04/2013 - 16:52 | 4214978 lickspitler
lickspitler's picture

It's clear what is not in an uptrend.... Gold n Silver.

But there is no such thing as a PM downtrend . It's a buying op.  Good luck with that.

Wed, 12/04/2013 - 17:08 | 4215041 MillionDollarBogus_
MillionDollarBogus_'s picture

fonestar,

All that needs to be understood here is how to recognize when an asset bubble has reached critical mass, and how to cash out before it collapses...

Show us how to do that...

 

Wed, 12/04/2013 - 17:20 | 4215081 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Peak coin, it is all deflationary from there on in as long as the value is pegged to inflationary fiat currencies. You guys all miss the bigger point too much has been invested in venture capital as far as infrastructure goes for people to just give up without a long a protracted fight on this one. Bitcoin may go bust the infrastructure won't and something else will fill the void to make use of the infrastructure. You people think like old dinosaurs and can't seem to see the forest for the trees when it comes a system. The crypto-currency is only one facet of it.

Thu, 12/05/2013 - 03:08 | 4216760 Kirk2NCC1701
Kirk2NCC1701's picture

For the sake of academic integrity, I invite you and all other naysayers to identify the difference between a bubble and a "Step-function", as it pertains to BTC.

Seriously. Only ZH-worthy responses please.

Wed, 12/04/2013 - 19:12 | 4215448 StillSilence
StillSilence's picture

"Enoy the ride, and remember to take profits."

 

If you are able to liquidate as you like, that is.

Wed, 12/04/2013 - 16:25 | 4214876 akak
akak's picture

 

Most of you are just too plain stupid to understand abstract principles or Bitcoin.

Or maybe many of us, unlike you profoundly ignorant yet smug zit poppers, have enough historical perspective and plain old common sense to recognize Tulipmania Part LXXVIII when we see it.

Fonestar, I think you should change your handle here to MillionDollarBitcoin.

Wed, 12/04/2013 - 16:25 | 4214888 fonzannoon
fonzannoon's picture

This bitcoin bullshit is getting old real fast on here. There truly must be nothing else to discuss. 

Sad.

Wed, 12/04/2013 - 16:40 | 4214936 WOAR
WOAR's picture

Well, after bitcoin went up in value, all of these guys quit their jobs and just spend their time trying to pull their bitcoins out of the system.

That's why the comment section is full of bitcoin retards: They are all jobless, and have all the time in the world to sit in front of a computer screen, proclaiming themselves to be kings in front of mindless peons.

Meet the new boss, same as the old.

Do NOT follow this link or you will be banned from the site!