I often explain my love for the markets to those that ask how I got so "into it" by comparing it to sports. Growing up you begin to play sports, you learn the rules of the game, watch the games on TV, and slowly you start to develop a relationship with the characters and daily events that compile a season.
It was the same way for me in the markets. I picked up a book one day, then read another, then made an investment, then began to track the daily movements, learn the characters, and it turned into a new type of "sports" that is constantly moving and changing globally 24 hours a day.
As with sports, there are certain characters within the arena that are more gifted than others. In sports athletes were born with god given ability that is usually combined with endless practice to achieve greatness (see Malcolm Gladwell's 10,000 hours chapter in his book "Outliers"). In the financial world participants may be born with a certain level of financial intelligence (see the Theory of Multiple Intelligences) which is then combined with endless work and study to achieve greatness.
It is these people that I try to read, study, and learn from through every article, book, or interview they provide. Just like when you hold your breath when a punt is kicked off to Devin Hester of the Bears, an interview or article with these market participants leave you in awe of their ability to take information and work it down to a logical outcome.
One of those names, who I apologize for gushing over continuously on this site, is Kyle Bass. We had the fortune of receiving his most recent letter to clients (free of charge) which I have posted below. It is an extremely simple conclusion of what is right ahead of us based on nothing more than logic, something most market participants have trouble putting together (due to psychological market factors that are beyond the scope of this discussion - see work of Daniel Kahneman or Dan Ariely).
Okay, enough about love for the markets for those that just want to know what is coming next. Here is the letter from the current take your breath away superstar of finance, Kyle Bass (Click "Full Screen").
Hayman_Nov2011
