Odey: Europe may follow China into bubble territory

Crispin Odey has warned of a bubble in European equities, saying ECB QE has left investors with no option but to buy the asset class - similar to the dynamic now visible in China.

In his latest note to clients, the hedge fund manager said the European Central Bank's quantitative easing programme had been a "gamechanger" for markets but warned it is producing another equity market bubble. The manager of the Odey Opus fund has held bearish views of the market for several months and is concerned about the implications of investors being pushed up the risk curve for returns. "By turning the [European] bond market into a speculative game in which a positive return can only be achieved by selling the bond at a higher price to a greater fool, investors are forced to l...