- SHAWN Bergerson, founder of Waterstone Capital Management LP, bet against convertible bonds of Advanced Micro Devices Inc in June 2007. More than a year later, he reversed course and bought the securities. After riding the rebound by markets in 2009, he's wagering against consumer-related stocks because he sees Americans curtailing spending and reducing debt amid high unemployment.
- Mr O'Shea, who runs COMAC Capital LLP, and Laurence Benedict of Banyan Equity Management LLC said they have reduced the size of their investments because it's hard to know how markets will behave.
- Mr Gerstenhaber is planning to bet against industries that do poorly when the economy loses steam, such as materials, energy and homebuilders. 'Our expectation is that we will continue to see downward revisions to growth forecasts in advanced economies,' Mr Gerstenhaber, 49, said. The US$1 billion Argonaut Macro returned a cumulative 48 per cent from the start of 2007 through June 2010.
- The winning-streak managers made money through a combination of prescient investment calls, having smaller trades for shorter periods of time, which enabled them to get out of unprofitable positions sooner, and raising cash before markets slumped in the second half of 2008.
- In a 60 Minutes interview on June 7last year, US Federal Reserve Chairman Ben S Bernanke said: 'Well, I absolutely agree that confidence is key. People don't know what's happening. And they're afraid. And they're not sure what, you know, whether or not the system is going to recover. So, how do you get confidence, that's the question. And I think the way to get confidence is to show progress.'
- Thomson Reuters/University of Michigan preliminary index of consumer sentiment fell to 66.5 in July from 76 a month earlier, below forecasts. Readings on consumer expectations and current conditions also fell in early July from June. The expectations reading fell to 60.6, the lowest level since March 2009, from 69.8. Meanwhile, the current-conditions reading declined to 75.5, the lowest since November, from 85.6.
- This week, the Conference Board's consumer confidence index, which had declined in June, retreated even further in July. The index now stands at 50.4, down from 54.3 in June. It is made up of the present situation index, which decreased to 26.1 from 26.8, and the expectations index, which, relating to conditions six months ahead, fell to 66.6 from 72.7 last month.
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