In The Financial Crisis, 200% Of The People In The Financial Crisis Encountered Difficulties.

London hedge fund 36 South Capital Advisors has made a lot of money in the market.

The company's CEO Jerry Haworth is ready to make another big effort and is hopeful.

Haworth said in an interview with Real Vision TV on Friday (August 5th) that the major central banks have injected the economy into the economy.

To suppress volatility, but it will backfire in the end.

"Chaos will be inevitable," he said.

Haworth said: "

It has become so large that participants are no longer serving their interests, and the government is one of the largest participants. They will lower interest rates below zero and then they will be trapped here.

Even homeless people can get a loan of 1 billion dollars at zero cost, so they are all curious about how they will end up.

Haworth also pointed out that this leads to two order consequences. People will say, "this is free money," which I think will eventually push up inflation.

With inflation rising, the problem arises: what should we do with interest rates? If interest rates follow suit, chaos will follow.

There will be chaos in the stock market, housing market and bond market.

Can you imagine the interest rate rose to 7% London housing market will be what is it? It is likely to collapse 50% to 75%!

Haworth has reason to say so.

Hedge funds are mainly invested in long-term options, basically based on long term volatility.

This means that when volatility rises and the market begins to fluctuate violently, that should be the case.

It will benefit from it.

He pointed out that the central bank is trying to reduce volatility, but this will lead to a sharp rise in volatility in the future.

According to Business Insider, after the Lehman crisis in 2008 and the market turmoil last August, a fund belonging to 36 South earned more than 200%.

"I think volatility is like a train leaving the station," Haworth said.

At first, it quivered and then became safe and gradually began to accelerate.

Usually there is contagion, and the vibration will gradually accumulate.

But now, as in August and January, you will feel the shock, and then the central bank will take measures to shake it away again, and in the short term, it will achieve the desired result.

But in the medium and long term, I am not sure whether there will be more negative effects and extreme volatility. "