Hugh Hendry: Bitcoin could hit $1 million

From Investment Week, everyone favourite bear hedgie recently turned bull raises eye-brows today:

“We are in 3D printing stocks. I say to my team ‘don’t tell me the valuations, it is trending…This is the environment where Bitcoin could go to $1m. There is no qualitative reason, but it is trending. If I could own Bitcoin, I would. If I own 3D printing, it is just the same thing,” he said.

…“There is no point arguing about the one-way causality we [as an industry] believe determines our processes. That is all about a belief this is rational.

“We want to believe markets go up because the economy is improving, because corporate cashflows are improving. But when you get monetary disturbances creating loops, it does not really matter.”

Meanwhile, although the hedge fund manager remains concerned over the fate of China, despite his bullish turn, he acknowledged trend-driven investors could also play Chinese stocks effectively.

“You could go long consumer discretionary, or long Chinese internet stocks, and hedge out the beta,” Hendry said.

Enjoy it but don’t believe it!