Hugh Hendry, the opinionated CIO of Electica Asset Management, offers some important advice in today's Financial Times for any European investment bankers wondering what to do with their last ever bonus before the European Union's bonus cap takes effect. If you want to hedge against another banking meltdown, Hendry says there is only place to put your money:
"You should buy equities if you believe many European banks and their sovereign paymasters are insolvent," says Hendry.
Hendry adds that we're stuck in a "unstoppable bull market" as the West resorts to ever-looser monetary policy to keep its economies (and banks) afloat and counteract deflation in an oversupplied China: "There is one reason for being long markets and one alone: sovereign nations are printing money and prices are trending."
Naturally, there could come a point when the house of cards collapses, but wise bankers would be sure to sell their equities holdings before that arrives.
Don't want to buy equities? You could always buy Bitcoins, which Hendry is also keen on. Or you could just spend it all on school fees, mortgages and income tax and be done with it.