Dylan Grice wrote the last letter in his sporadic series of Popular Delusions, a few days ago, in which he announces his departure from Societe Generale SA (PINK:SCGLY) (EPA:GLE). The analyst is known for his unusual, but entertaining take at the economy. Grice is leaving SG and joining a 'small but outstanding investment practice', he calls his new job an attempt to actually be clever, rather than just sounding clever.
Dylan Grice does not leave us without his witty metaphors. In his last letter, he talks about the resilience of cockroaches and then relates it to the capacity of survival in business which is the essence of success. Considering the present state of markets, he talks about the opinion that owning equities is not a good option even though bond yields are nowhere near high, but with bonds one at least saves the invested capital. Grice does not agree with this portfolio positioning, in his opinion, a cockroach would have bought both bonds and equities at the same time. This would incorporate a better risk profile and less need for forecasting and predicting estimated performance.
Grice ends the letter by thanking the freedom of analysis and opinion that was offered to him in Societe Generale SA (PINK:SCGLY) (EPA:GLE), something he says is not available in other investment banks. We expect to read more from him as he settles in his new investment firm