John Burbank: European QE Can’t Save The Markets Same As the U.S. Quantitative Easing. Everything Will Be Liquidated

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As you know, we have featured John Burbank in our Guru List because we believe he is a manger everyone should follow and learn from. He is not the normal Goldman Sachs former employee but a man who built it all alone. The self-made hedge fund star John Burbank began his success by using borrowed money from credit cards to starting trading. After several failures and important lessons he got it right and started following the trend of his own success.

At Zerohedge he recently warned that “we are on the precipice of a liquidation in emerging markets like the fourth quarter of 1997,” Passport Capital’s John Burbank sits down with RealVisionTV to discuss why “the Fed would eventually be forced into a fourth round of quantitative easing to shore up the economy.” Being among 2015’s best performing hedge funds, successfully navigating this turmoiling unwind of the Fed’s efforts to “mean-revert” the world’s assets back to normal, Burbank concludes, “nothing’s safe,” no matter what The Fed does, “the liquidity of everything is being taken down.”

 “The market is now going to discover just how much liquidity [or lack of it] is actually in the market.”

“QE in Europe is not the same as QE in The US”

“There’s just not enough dollars out there… everything will be liquidated”

Click image below for link to brief RealVisionTV interview:

Source: RealVisionTV

 “What we learned after the financial crisis was that The Fed is able to reflate assets in The US and The World… for a time.

What The Fed learned was that their models don’t work – they didn’t have the GDP/Economic effect – and to interpret what they are doing,

I think they realize the more they do this, the more they can’t get out of it, and the more they pervert markets… and I believe they want to get out of it.

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Full interview available here.

Passport Capital, LLC is a San Francisco-based, global investment firm founded by John H. Burbank III in 2000. The firm manages approximately $4.1 billion in assets as of August 31, 2015. Passport Capital seeks to achieve superior risk-adjusted returns through a combination of macroeconomic analysis, fundamental research and quantitative tools. It employs top-down, macroeconomic analysis to identify durable, secular changes not reflected in asset prices. It conducts rigorous fundamental research in an attempt to identify individual securities that most effectively express the firm’s investment views. Finally, the firm employs quantitative tools to construct portfolios aimed at delivering superior returns within specific risk and liquidity targets.

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