FA..."Take Some Money Off the Table":

Rally Fails to Shake Ortel's Bearish View
Posted Apr 29, 2010 02:56pm EDT by Heesun Wee in Investing, Recession, Banking
Related: dia, spy, ^GSPC, tlt, tbt, GE, ^DJI
After the Fed reiterated its pledge to keep benchmark interest rates near zero for an "extended period" on Wednesday, some market watchers wonder: when will the easy-money end? Our guest Charles Ortel, managing partner at Newport Value Partners, is a vocal opponent of the Fed's policies and remain suspicious of the current rally, which resumed in earnest on Thursday.

"I don't know how much more patience foreign investors are going to have with this easy money policy," Ortel tells Aaron in the accompanying clip."Foreign investors are going to looking more and more askance at what they see going on in this country." (Click here for a prior segment with Ortel on what he calls the Obama administration's "war on capitalism.")

What happened to Dow 6,000? Ortel appeared on our show in November and said "forget Dow 11,000, it's looking more like Dow 6,000" and last summer said GE was heading for $2. Obviously, neither forecast has panned out.

While admittedly "early" in his calls, Ortel stresses that his clients are true long-term investors. And he rightly notes being ahead of the curve in urging investors to buy credit default protection on U.S. Treasuries back in August 2008.

"You see very clearly that sophisticated investors are more than concerned about the profligate, economically illiterate management of many governments around the world," he says. (For example, Ortel says a default may make a lot more sense than a huge IMF-EU bailout.)

Meanwhile, Ortel remains firm on his view that this rally will unravel. His advice to investors:

-- Take some money off the table now
-- Look outside America's borders and consider investments beyond traditional U.S. equities