Noted hedge fund manager Bill Fleckenstein is closing his short-only fund.
"Though I think the stock market still has unfinished business on the downside, I believe that 2009 is the year to prepare for a return to managing money in a more balanced fashion," Fleckenstein writes at MSN.
Likening the economy to a baseball game, Fleckenstein believes the financial crisis may well be in the ninth inning, but the recession is only in the third.
"As for the funding crisis and the potential problems in the dollar and in bonds, most people don't realize that a game has been scheduled," he observes.
Fleckenstein believes that the current market rally will continue "in fits and starts until sometime into early next year as folks become optimistic about what the new Obama administration will propose."
"There's a big difference between proposing something and having it work," Fleckenstein notes, pointing out that much of the fiscal stimulus already announced hasn't had time to go into effect.
"It's dangerous to be short right now, though it's probably too early to be long for real," Fleckenstein says.
"Other than in precious metals and precious-metal securities, I don't plan on doing much on the long side."
Gold has gained 15 percent over the past eight days as the dollar lost 12 percent.
"Gold is once again back in vogue with investors as demand for safe-haven asset types remain high," James Moore, an analyst at TheBullionDesk.com, wrote in a note today.
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