Quantitative Easing Is a Ponzi Scheme: Dever

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Nov. 28 (Bloomberg) -- Michael Dever, President of Brandywine Asset Management, discusses the impact of monetary policy and his subsequent investing strategy. He speaks on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

Near record highs across the world.

That is accurate.

The reason you have that is because the central banks around the world are throwing money into the marketplace.

As long as you have that taking place, the money growing in and the quantitative easing is a big ponzi scheme that the government has funded and it is not helping the economies.

The money has to go somewhere and people are finding places to put it.

You are trying to kickstart it.

You are making sure that the growth goes.

As long as we have growth, we can get rid of the liquidity.

That is the story.

The qe is not providing growth.

The growth in the economy as a strong and stable policy, a fair tax code and regulations that are not burdensome.

She we is a monetary phenomenon.

If you have more money and businesses doing that, it will find a home.


Talk to me about the industry groups that you are watching.

Where'd you find value?

You look at things and say that they are expensive but will grow in these environments question mark but it is different than the asset class purchases.

Investors are looking at asset classes and equities.

Within that, to have different sectors of categories.

We take a view where we say that we see individual opportunities at every level of every market.

We are not just limited to equities.

We see commodities and equity markets.

You are looking at trends, right?


that is the way we do it.

Our approach is to look at the bottom and up.

Trends can be a component in that.

There has to be a return and we look at the market, for example.

You look at the cross production data on commodities.

What is your favorite place?

We are constantly changing that.

We have some long positions in stock markets and we like the fundamentals there.

We have short position in the green markets.

These are more sentiment-driven factors than fundamental factors.

You try to ride the wave.


Sentiment is a contrary indicator and we look at sentiment, for example, in the equity markets.

We have had signals and exposure based on sentiments.

Will take a quick break and we will come back to discuss how you utilize the market data is.

The chief executive officer of brandywine asset management.

Thank you very much.

Ubs cracks down on chat rooms and we will tell you why.

And, bye-bye berlusconi.

All of that is next.

This text has been automatically generated. It may not be 100% accurate.


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