While acknowledging the fundamental strengths of the U.S. economy, he told attendees that the markets are about to reach a disastrous moment. “I think we are single-digit years away from the most profound market clearing moment,” he said, “A 1932 or a 1982, where you don’t need smart guys or girls, you just need to be there.”
Hendry elaborated on how this might happen:
To create the market clearing process that I fear is within reach I would tantalize or fear [sic] you with the nation that that we could see a hard landing in Asia, coinciding and indeed being encouraged by the problems in Europe. And if you get those two events colliding, and given the lack of protection in such a scenario in Asia, then you would have another profound dislocation, and that’s the point where you reach the bottom, and you don’t need wise guys, you just need courage.
Watch Hendry participate in the panel “Is It Time To Invest In Europe?” at the Milken 2012 Global Conference yesterday: