Heres the vid where he clarifies http://www.bloomberg.com/avp/avp.ht...//media2.bloomberg.com/cache/vgzA3vdOIBm8.asf
It is incredible that Taleb, the risk aristothle advices to sell short: A strategy with unlimited risk with limited profits. Why not buy puts to limit exposure? Besides, as he said: "the unprobable event WILL happen if you wait long enough" What if bonds don't get lower in decades? What prevents the Fed from buying 60%, 70%, 80%, 90% of the T-Bond auctions? (They are already buying 50%)
Hugh Hendry (sitting next to Taleb) appears to be getting quite uneasy once Taleb starts talking about the "no brainer" nature of shorting US Gov. Bonds
"The most exciting returns are to be had from an asset class where those who know it best, love it least" Rinse. Repeat. In my entire investing career, I don't think I've ever seen such a consensus as we've seen form over the past month in Treasuries. They've already had a big month in January. I expect Treasuries to continue to outperfrom for the rest of the year.