"This is the most difficult time in the world to invest, in my lifetime."
Kyle Bass
Kyle Bass, famed Hedge fund manager of Hayman Capital who correctly predicted the subprime crisis and then the European Sovereign debt crisis, warns that the debt crisis has reached a point where a credit event is likely to occur in Japan. With total global credit market debt reaching the point of 350% of GDP, the slowdown in China brings this problem to a head and may must result in sovereign debt default in Japan. Below is an interview conducted at the Darden School of Business at UVA:
http://kylebassblog.blogspot.com/
It is impossible to say exactly when this debt supercycle will end with any precision. In fact this may take some additional years to resolve. However, if Kyle is right this is not a time to be taking excessive risk especially in lieu of our view that the US and likely global economies are in recession For this reason we seek investments we feel have low correlations with traditional stock and bond markets and that may do well even during a crisis. We ask for your continued patience as this problem works itself out, as it eventually must.