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Hello John,

I love your emails! They are refreshing and they put things in proper perspective. You are never rattled and have a steady hand. You instill confidence and have a wonderful perspective, and your pictures are quite something. They reveal your zest for life and are window openers for your readers. Arrogance and haughtiness are not present and that is such a wonderful and unusual character quality that makes you so much more appreciated.

Thanks for being you. Please keep up your good work. You would make anybody a good friend.

Best regards,

Bill
Florida

One Can Only Hope

February 22, 2023/by Mad Hedge Fund Trader

The Mad Hedge Fund Trader Interviews Marc Chandler of Brown Brothers Harriman

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ChandlerMarc.jpg picture by madhedge

Featured Trades: (MARC CHANDLER ON FOREIGN EXCHANGE)
South Korea iShares ETF
Singapore iShares ETF
Market Vectors Indonesia Index ETF
Thai Capital Fund, Inc.

1) Marc Chandler of Brown Brothers Harriman on the Foreign Exchange Market. My guest on Hedge Fund Radio this week is Marc Chandler, the global head of currency strategy at the esteemed Wall Street firm, Brown Brothers Harriman.

Marc says that the next big focus in the foreign exchange markets will be a strengthening US economy and another slow down in Europe.? After one last gasp, that could take the euro as high as $1.45, and a great shorting opportunity will set up that could take it as low as $1.10-$1.15 next year. We won't see parity until the Fed announces a convincing exit strategy from its monetary easing, which is some time off. Read more

October 12, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews John Petersen of Fefer, Petersen & Cie on Hedge Fund Radio

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PetersenJohn.png picture by madhedge

John Petersen is an attorney specializing in venture capital investments in the alternative energy space with Fefer, Petersen & Cie in Berne, Switzerland.? He argues that the entire electric car movement is a complete fraud orchestrated by a few big car companies pandering to growing numbers of ?green? consumers. Batteries are expensive, and do a poor job of replacing a gas tank.

For example, the $100,000 all-electric Tesla roadster uses 6,000 model 18650 cell phone type batteries, which is akin to using ?6,000 hamsters to pull a stage coach.? Deutsche Bank says that there are enough new factories on the drawing board to build batteries generating 36 million Kwh by 2015. These will be used to power vehicles like the $44,300 Nissan Leaf, which launches in December, and will be powered by several hundred larger, soda can sized batteries.

But even if the world?s total battery output is devoted solely to vehicles like the Leaf, fuel savings would amount to only 600 million gallons of gasoline a year, worth only $1.8 billion, about five hours worth of global oil production. If these batteries were devoted to hybrid vehicles like the Prius, the energy savings would amount to 3.8 billion gallons worth, a much more substantial $11.4 billion. The low hanging fruit for investors in the fuel efficiency race can be found by pushing forward existing, simpler, and cheaper technologies.

A great example is the ?stop-start? integrated starter/alternator. Cars burn about 10% of their fuel idling at traffic lights while driving in cities. ?Stop-start? turns the engine off, and then restarts it when the light turns green. European car manufacturers are rushing forward with this fuel saver, which costs about $600 per vehicle, to meet stringent CO2 standards. The system requires more advanced batteries which can handle dozens of engine starts a day, instead of a handful.

The Department of Energy recently handed $34 million to Xide Technology (XIDE) to develop just such a product using a lead-carbon formula. Global auto parts supplier Johnson Controls (JCI) is also involved in the space. The play here is that far more versatile batteries can command much higher prices, possibly $150, compared to the average $57 for traditional car batteries. Those taking a look at XIDE will find a $429 million market cap selling at $5.57/share versus $20 a year ago. In the meantime, car companies are going to hold back on making major capital investments in lithium battery power trains until the technology becomes proven. Better to invest in a company that may become profitable next year, rather than in five years, or never.

To learn more about John Petersen?s views on alternative energy, please visit his blog at altenergystocks.com. You can also find an archive of his past work at http://seekingalpha.com/author/john-petersen/articles.You can contact him directly at fefer.petersen@gmail.com. To listen to my complete interview with John Petersen on Hedge Fund Radio, please click here.

XIDE.png picture by madhedge

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com, click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

March 29, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews John Mauldin on Hedge Fund Radio

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Market Seer John Mauldin Says the Stock Market Could Lose 40% From Here. Son of Texas and financial seer, John Mauldin, believes the stock market could shed 40% in the near future (SPX). John is the president of Millennium Wave Advisors, LLC, a Dallas, Texas based investment advisor, with $600 million in assets under management. John worries that the velocity of money, an indicator of how many times a dollar is reused in the economy, is collapsing.

This ratio, which is defined by the GDP divided by the money supply, bottomed at 1.15 in 1946. It peaked at a breathtaking 2.2 times in 1997, near the top of the Dotcom bubble. The ratio has been retreating ever since, has recently accelerated down to the 100 year mean, but still has much farther to fall to get to the bottom of the 100 year range. The collapse of velocity signals the end of a 50 year super cycle in lending.

For you and I, this means lower economic growth for perhaps another decade. It is partly the result of banks getting generous funding from the Treasury, and then sitting on it. The bucks simply stop there. It suggests that no matter how much money the government pumps into the economy, it might as well be pushing on a wet noodle. The gold bugs have got it all wrong, simply focusing on money supply growth and expecting hyperinflation. A lot of money can sit and go nowhere. The inflation will come back with a vengeance when the economy revives and banks finally resume lending.

With so much new money being created in the last two years, the chances of the Fed being able to head this off are close to nil. Similarly, the bond vigilantes may have to wait a couple of years for their big move down in the 30 year Treasury bond (TBT). When the bond markets call ?times up,? the US will be forced to embark on some highly deflationary spending cuts. If this happens during a recession, it could be a disaster. John thinks there will be a substantial slowdown in growth in Q3 and Q4. With anticipated federal tax increases of 2% of GDP in 2011 added to a further 1% in state tax hikes, the recovery will be strangled in its crib. That?s when the risk of a double dip recession explodes. Over 3-4 years higher taxes could add up to a burdensome 9% drag on GDP.

John says that emerging markets (EEM) will decouple from the US and keep powering up, as this is where the real economic growth is (EEM). He has been a gold bull since 2002 (GLD), when it was below $300/ounce, and isn?t backing off from that position, but prefers to own it against Euros at this point. He thinks the entire premise for the existence of the European currency (XEU) is questionable, and sees it eventually moving to parity against the dollar. John doesn?t manage money directly himself, but outsources assets with market timers employing a number of different models. One firm he has particular success with is CMG in Philadelphia (CMGTX). He really only selects individual stocks in the biotech area, which he thinks have the potential to develop into a bubble, and has a variety of small cap and microcap holdings.

John has an incredibly diverse past, which includes a degree from Rice University, a stint at divinity school, and time spent running a check printing company which led him into newsletters. Today, his two letters, Outside the Box and Thoughts From the Frontline, go out on the Internet to 1.5 million readers a week. John is the publisher of three investment books, The Millennium Wave, Just One Thing, and Bulls Eye Investing. To learn more about John?s many activities in the markets, please visit his website at http://johnmauldin.com/? . To catch my entire insightful interview with John Mauldin on Hedge Fund Radio, please click on the ?PLAY? arrow above.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com or click here , click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

March 17, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Charles Nenner on Hedge Fund Radio

Podcasts

charles-nenner-picture3.jpg picture by madhedge

A second deflationary tidal wave may hit the US early as April. The Dow is going to crash, possibly heading for a double bottom at 6,000, and bonds are going up for the rest of the year. Gold has had it for the foreseeable future. Crude futures are predicting war with Iran by 2013. First, deflation, then inflation. The greatest trade of your lifetime is setting up. This trend could start tomorrow, or in two years. Blow your entry point, and you?ll get wiped out. Oh, and by the way, crude oil futures are discounting way with Iran by 2013!

After much pleading and cajoling I managed to get a no-holds-barred, no stone unturned, 40 minute interview with technical analyst to the stars, Charles Nenner of Charles Nenner research in Amsterdam, for Hedge Fund Radio. Bottom line: A second deflationary tidal wave may hit the US as early as April. The Dow could crash, possibly heading for a double bottom at 6,000, and bonds could go up for the rest of the year. Oh, and by the way, crude oil futures are discounting way with Iran by 2013!

Once this deflationary scare burns out, the greatest trade of your lifetime will set up, says Charles. This is the one where you pile on the leverage, take out a home equity loan to get a still bigger position, and max out your credit card to cover your living expenses. Get it right and you?ll never work another day again, you can pay off your home mortgage, and get a building named after you at that college you can?t stand. The bad news? This trend could start tomorrow, or in two years. Blow your entry point, and you?ll get wiped out.

Since Charles has had a particularly hot hand lately, calling the top in the US stock market within four days, months in advance (click here for my December 12 interview with Charles), he has major hedge funds relentlessly banging on his door for his next call. I managed to track him down late last night at his home in Amsterdam, where I extracted an update on his global view.

Charles is talking about shorting the 30 year Treasury bond, a trade I?ve been yammering on about for the last several months, and seems to be on the verge of breaking a 29 year bull market trend line. The yield on this paper, now at 4.55%, will gyrate between 4.25% and 5.07% for the next year. Then sometime in 2011 we will break out to 7.5%, possibly very quickly. That would take the bond futures from 119 today to as low as 82.

But that?s just the opening act. Once inflationary fears take hold, the 30 year yield could fly as high as the November, 1981 high of 13%, bringing the futures down to 53. The Armageddon scenarios you hear about today could take it lower still. And this is all in a contract with a margin requirement of only $3,240 for a $100,000 position, giving you 30:1 leverage. No wonder the big hedgies are salivating.

Keeping this interest rate scenario in mind, I then pinned the erudite Dutchman down to calls on every other major market. The S&P 500 may grind back up as high as 1145, and then the next big move is down. The dollar is over extended here, but he sees it eventually moving to $1.18 against the Euro. The yen is ready for a big move down after peaking around here, initially targeting ?105. Traders should take profits in the Ausie/Euro cross at 68 by May. Crude will peak in the low eighties by the end of March, and then begin a one year decline. Copper could also peak then at $3.73. Gold has peaked already, with Charles bailing on his longs at $1,220/ounce, and we are now in a downtrend that will last for some time, until the above mentioned inflation fears kick in and take it to new highs. Natural Gas looks terrible, having just peaked at $6/MCF. It?s headed downtown, first to $3.80 and then to $1.70. Gulp!

What is the one trade that Charles would put on today? Go long the Ausie/Yen cross, where you go long the Australian dollar and short equal value of Japanese yen at today? price of $AUS 0.80. Charles? calls were so hot, my hand was sizzling when I finally put the handset down.

Charles has a long career that includes stints at medical school, Merrill Lynch, Rabobank, and 12 years at Goldman Sachs. He has spent three decades developing his proprietary Cycle Analysis System, which generates calls of tops and bottoms for every major market in the world. Charles developed a huge following after 2007, when he accurately nailed the top in the Dow at 14,500 and urged his clients to put on short positions when everyone else was predicting that the market would keep grinding higher. I have been following Charles daily research reports myself for two years, and found them to be uncannily accurate. Today, Charles Nenner counts major hedge funds, banks, brokerage houses, and individuals among his clients. You can find out more about Charles? work at his website at www.charlesnenner.com.

To catch my entire sizzling interview with Charles Nenner, please click on the ?play? arrow below.

Hedge Fund Radiois a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

March 11, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Barton Biggs of Traxis Partners on Hedge Fund Radio

Podcasts

Featured Trades: (MSFT), (INTC), (CSCO), (ORCL), (FXI), (PIN), (EWY), (THD), (EWT), (EWH), (TUR), (PLND), (RSX), (EWZ), (USO).

Confessions of a Bull. Barton Biggs, founder of mega hedge fund Traxis Partners, spent an hour outlining his current investment strategy with me. Barton is a man of strong opinions, backed with intensive research, which he communicates with his characteristic gravel voice. I spent the better part of the eighties debating every pebble of the investment landscape with Barton. As I recall, what to do about Japan was the topic of the day, and I was bullish.

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Today, Barton can say with ?real certainty? that large cap multinational equities are the cheapest they have been in 30 years using sophisticated models that analyze price/sales, price/free cash flow, price/earnings, and a whole host of other metrics. Looking just at price/book ratios, these stocks have been this cheap only three times in the last 120 years. Big cap technology stocks, like Microsoft (MSFT), Intel (INTC), Cisco (CSCO), and Oracle (ORCL) are at the top of his list. Other multinationals with plenty of emerging market exposure are attractive, such as Caterpillar (CAT).

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The market is now at a 15-16 multiple, discounting S&P 500 earnings for 2010 at $75/share. A stronger than expected economy will take that figure as high as $90/share, which the market is not expecting at all. Barton sees the US as half way through an economic recovery, and the main benchmark indexes could surprise to the upside, as they have such heavy big cap weightings. He would avoid domestic companies, such as those in real estate, as the environment for stocks generally is poor. He foresees a ?new normal? of a lot of volatility in stocks for the next 4-5 years. Longer term he sees US GDP growth downshifting from the heady 3.8% annual growth rate of the last decade to only 2.5 % in this one. But big cap multinationals should be able to bring in a reliable 5%-6% annual return on top of inflation.

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Looking at the world as a whole, Barton thinks Asia is the place to be. A bubble may be developing in China, but it is at least 3-5 years off, and there will be plenty of money to be made until then. India is another big pick because it is ten years behind China, and has yet to experience its big growth spurt. South Korea, Thailand, H-shares in Hong Kong, and Turkey are also lining up in Barton?s sites. Looking at a 1%-1.5% growth rate, things look grim for Europe, with the possible exceptions of Poland and Russia. Traxis is short Brazil, because it has already had a great run, and because the country still faces some severe social problems. Commodities had their run last year, and won?t do much from here, but they aren?t going to crash either. He sees oil grinding up because the cost of new sources is becoming astronomically high. Barton avoids gold because it has no yield or PE, and would rather not be associated with the crazies that inhabit that space. Bonds will be deflation driven for the next year, but are definitely not for your ?Rip Van Winkle? investor, as they represent poor value for money. Real estate is dead money.

To hear my interview with Barton at length, please click the ?play? arrow below.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio?? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

March 6, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Jon Najarian of OptionMonster on Hedge Fund Radio

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How does an NFL linebacker develop a series of computer algorithms that give him a crucial edge when trading the market? That is the question I hoped to answer when I interviewed Jon Najarian, founder and CEO of OptionMonster (click here for the site).

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Jon?s proprietary program, called Heat Seeker ?, monitors no less than 180,000 trades a second to give him an early warning of large trades that are about to hit the stock, options, and futures markets. To give you an idea of how much data this is, think of downloading the entire contents of the Library of Congress, about 20 terabytes, every 33 minutes. His firm maintains a 10 gigabyte per second conduit that transfers data at 6,000 times the speed of a T-1 line, the fastest such pipe in the civilian world. Jon then distills this ocean of data into the top movers of the day, which he puts up for free on his website, and offers much more detailed analysis through a premium subscription product.

?As with the NFL,? says Jon, ?you can?t defend against speed.?

The system catches big hedge funds, pension funds, and mutual funds shifting large positions, giving subscribers a peak at the bullish or bearish tilt of the market. It also offers accurate predictions of imminent moves in single stock and index volatility.

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Jon started his career as a linebacker for the Chicago Bears, and I can personally attest that he still has a handshake that?s like a steel vice grip. Maybe it was his brute strength that enabled him to work as pit trader on the Chicago Board of Options Exchange for 22 years, where he was known by his floor call letters of ?DRJ.? He formed Mercury Trading in 1989 and then sold it to the mega hedge fund, Citadel, in 2004.

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Jon developed his patented algorithms for Heat Seeker? with his brother Pete, another NFL player (Tampa Bay Buccaneers and the Minnesota Vikings), who like Jon, is a regular face in the financial media. Jon thinks that if China is serious about throttling back its economy, it will have a dampening effect on global financial markets for some time. The S&P 500 is going to stick around the 1100 level, and commodities are going to stay in a big sideways range. Volatility is going to die.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com or click here , click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

February 27, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Peter Schiff of Euro Pacific Capital on Hedge Fund Radio

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Will Peter Schiff become the first ?Tea Party? member of the US Senate? Peter Schiff certainly hopes so.

The argumentative fund manager is trying to capture the seat vacated by outgoing Democrat Chris Dodd in the upcoming November election. The Republicans of the last administration weren?t ?real? ones, Peter insists, but Democrats running under the Republican banner, with the same old profligate, government growing, deficit spending policies. Peter?s job is to give the American people the stiff medicine they deserve, which he admits may lead to his own undoing.

He argues that the august body will need his expertise when a looming financial crisis hits that will send inflation and interest rates skyrocketing, stock and bond markets crashing, and the failure of more financial institutions. Civil unrest is coming. Gold and emerging market stocks will be the only place to hide out and preserve your wealth.

Peter, who runs a China fund, says it is least likely to crash, as it has enormous savings with which to bolster its own economy. He believes the next financial crisis, which will be far greater than the last, and will be triggered when emerging nations decide to quit recycling their ballooning surpluses into US Treasury bonds, and start reinvesting in their own economies. The devaluation of the dollar will be so severe that it would shut the US off from much of the world?s production, as imports become too expensive. He believes that ?100 years worth of depreciation will be compressed into just a couple of years.? In the end, you won?t be able to buy ?a stick of gum? with a dollar.

Peter argues that the US government is a ?cancer on the economy,? and? the Fed ?has managed the economy into the ground,? with couples having to work overtime to bring in the same income that a single wage earner did 30 years ago. Although Peter?s emerging market, precious metals, and commodities based strategy took a major hit in 2008, early believers who bought in 2000 were always above water. It?s just a matter of trading greater returns for greater volatility.

?The United States economy is like the Titanic, and I am here with the lifeboat trying to get people to leave the ship,? said the Senatorial candidate.

Peter obtained his degree in finance from the University of California at Berkeley in 1987. In 1996 he set up Euro-Pacific Capital, a firm that has successfully focused on investing in foreign stocks, bonds, gold, and commodities. Peter was also the economic advisor to libertarian Ron Paul?s 2008 presidential campaign. If you want to participate in Peter?s Senate campaign, you can go to his website at www.schiffforsenate.com .

To listen to my complete interview with Peter Schiff on Hedge Fund Radio, please click the ?play? arrow below.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com or click here , click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

February 20, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Dennis Gartman of The Gartman Letter on Hedge Fund Radio

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gartman2-080529.jpg picture by madhedge

Legendary futures trader, Dennis Gartman, says the euro has had it, and has a long way to go before it finds a bottom. He is urging investors to short the European currency and go long Canadian and Australian dollars against it. They may resolve Greece, but not Portugal, Spain, or Italy.

The strong dollar is also causing a lot of damage to the commodities charts and their derivative equities, with those for Freeport McMoRan (FCX) and US Steel (X) broken. The government January crop report forecasting the corn harvest will leap from 12.8 to 13.1 billion bushels is a total game changer, as genetically modified seeds are delivering incredibly tough, weather resistant strains and surprisingly large yields.? Gartman is now repositioning his portfolio to go long industries that benefit from falling food and commodities prices, and go short producing industries. Gold is also taking a hit, so he prefers to go long against weaker sterling and the euro. Watch the euro/yen cross for short term market direction, as it is a great barometer of global risk taking.

Although he believes the economy is out of recession, it is not returning to the heady 3%, 4%, and 5% the economy sees in its rear view mirror. Instead, it is heading for the ?square root? scenario I have been arguing for, which he refers to as ?a tea cup with a handle.? With bankers reverting to their traditional 9:00-3:00 work day, the credit won?t be available to do any better. Why should they bother lending to customers of dubious credit quality when the steepness of the yield curve offers such a great free lunch?

Although there is much to worry about with Treasury bonds, it could be a long wait before we see a big move, and the early players could get bled dry by the cost of carry. Look no further than the JGB market, which some hedge funds started shorting 15 years ago, to no avail. US stocks are going nowhere, and could end up the year unchanged from where we are now, after suffering a big dip in the interim. China (FXI) is another story, which is leaping from the 14th century to the 22nd. Dennis also likes stocks in Brazil (EWZ), Australia (EWA), Canada (EWC), and Indonesia (IDX).

Dennis has been in the market since they traded rocks for pre-Cambrian settlement. He has published his daily ?Gartman Letter? since 1987, which is a must read for hedge fund managers, major corporations, banks, prop desks, and hedge funds. Dennis started his career as an economist for ?Cotton, Inc,? where he analyzed cotton supply and demand for the US textile industry. He went on to trade foreign exchange for NCNB National Bank in Charlotte, North Carolina, and to trade bond futures as an independent member of the Chicago Board of Trade. He then managed the futures brokerage operation of Sovran Bank. Dennis recently served as an outside director of the Kansas City Board of Trade, and taught classes on derivatives at the Federal Reserve school for bank derivatives. Dennis is going to share his thoughts with us on stocks, bonds, currencies, commodities, and the economy. If you are a qualified investors and want to shower Dennis with your millions for management, you can contact him at www.thegartmanletter.com.

To hear my entire interview with Dennis, where we discuss the future of everything under the sun, please click the play button below.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com , click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

February 13, 2010/by John Thomas

The Mad Hedge Fund Trader Interviews Andrew Horowitz of The Disciplined Investor on Hedge Fund Radio

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The liquidity driven rally is going to have to get some legs on its own, or there will be big problems very shortly, says Andrew Horowitz, president and founder of Fort Lauderdale, Florida based Horowitz & Company.

Andrew, who has built a major presence on the Internet at www.thedisciplinedinvestor.com, argues that investors are getting worn out by an onslaught of contradictory news coming out of Washington, and can pull the rug out from the market very quickly.

?When the risk switch is flipped ?on,? traders pile into positions, and when it is flipped ?off?, they pile out just as quickly,? says Andrew.

Virtually every technical indicator he follows was flashing overbought in mid January, forcing Andrew to dump half his long positions. Andrew uses a holistic approach to the market which he calls ?QantaFundaTechna,? which blends quantitative, fundamental, and technical approaches to generate buy and sell recommendations on stocks, mutual funds, ETF?s, and options. He is only using mutual funds in the offshore small cap arena where managers can use language and knowledge of local business and accounting practices to add value. His strategy enabled him to get through the disastrous 2008 and 2009 with low single digit returns, even though many technical and fundamental models were blowing up, allowing him to live to fight another day.

Andrew is a registered investment advisor, blogger, and podcaster extraordinaire. His podcasts, 145 of which have been posted so far, and are rated among the ?Top Ten iTunes?. He lists among his most interesting interviewees former labor secretary Robert Reich and hedge fund manager Dennis Gartman.

In 2007, Andrew has published a book about his approach called The Disciplined Investor-Essential Strategies for Success. He also writes for AOL Finance and MSN Money. Longer term, Andrew, who now has $80 million in high net worth customer accounts under management, prefers, South Korea (EWS), Singapore (EWS), Brazil (EWZ), and India (EPI). Technology still has a long way to run, and among the commodities, coal looks interesting. He likes the precious metal, and thinks he?ll get more bang for the buck with silver versus gold. In the end, Andrew believes that we are all going to have to work a lot harder and smarter to get decent returns.

Hedge Fund Radio is a weekly program featuring one-on-one interviews with the titans of the hedge fund industry. The show is hosted by legendary hedge fund manager John Thomas, one of the most seasoned players in the industry. It is broadcast live on station KGOL 1180 AM in Houston, Texas as part of the BizRadio?? network to 100,000 local listeners, and will be streamed online to a further 100,000 national and international listeners.

The show is broadcast every Saturday morning at 12:00 pm Eastern time, 11:00 am Central time, 9:00 am Pacific Coast Time, and 5:00 pm Greenwich Mean Time. For pilots and the military, that is 17:00 Zulu time. For the online link to the show, please go to www.bizradio.com or click here, click on ?Listen Live!?, and click on ?Houston 1110 AM KTEK.? For that added insight into the future of the markets tune in, or catch the show in my Hedge Fund Radio archives.

January 30, 2010/by John Thomas

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