Trade of the Century - Buy Gold, Short Stocks

Buy Gold, Sell Stocks Is the ‘Trade of Century’ Says One Hedge Fund

One of last year’s best-performing hedge funds says the “trade of the century” is to buy gold and sell stocks as risk assets are due for another meltdown.

It’s only a matter of time until the bearish bet pays off big, according to Crescat Capital LLC. While the Denver-based firm has only about $50 million under management, it has a history of outperforming the S&P 500 Index -- with its Global Macro Fund returning 41 percent last year alone.

Now the investment company says it’s ready to capitalize on an end of the economic cycle as indicators warn that a recession is imminent in the coming quarters.

Among the warning signs, Crescat cites corporate insiders who are currently selling stocks hand over fist -- indicating a potential stock bubble burst.

U.S. economic data is deteriorating and inversions remain across the Treasury yield curve

“Soon the buy-the-dip mentality and bull-market greed will turn to fear. Selling will beget more selling. That’s how bear markets work,” Crescat wrote.