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Tiger's Robertson Sees 'Doozy of a Recession'

CNBC.com
Friday, 19 Oct 2007 | 4:22 PM ET
Hedge Fund Legend Predicts Recession
Hedge fund legend Julian Robertson tells CNBC's Erin Burnett why he's bearish. Steve Romick, from First Pacific Advisors, and CNBC's Steve Liesman & Bob Pisani share their insight.

Hedge fund legend Julian Robertson said Friday he expects the U.S. economy is heading for a "doozy of a recession."

"I think we are going to have a doozy of a recession," Robertson told CNBC's Erin Burnett. "I think the credit situation is worse than anybody realizes, and...I think we're getting little inklings of that. I don't think any of the normal indicators you would look at in the economy are really very strong. As a matter of fact, they are weak, and not really getting any better."

Robertson, founder of the investment firm Tiger Management, also expressed some concerns about the devaluation of the dollar.

"I think the Federal Reserve will trash the dollar until such times that there is some turn around in the economy, or until such time that they see that as self defeating," he said.

Robertson explained that a weak dollar helps companies that export products outside the U.S.

Julian Robertson on Investing
Hedge fund legend Julian Robertson discusses Internet plays, green investing and the dollar's dive with CNBC's Erin Burnett.

According to Robertson, Bernanke is doing what he can to help the economy.

"I think in a sense, he is trapped in the sins of his forefathers," Robertson said. "I think he is doing exactly what he can do: ease ease, ease; cut, cut, cut; print, print, print."

Robertson also discussed some of the stocks he likes, including budget airline Ryanair Holdings, with Burnett, and talked about his interest in "greener" sources of energy such as nuclear power.

Robertson is credited with turning $8 million in start-up capital into more than $22 billion at the peak of the tech boom.

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