THE ECLECTICA FUND – JUNE 2006

O Lord, help me to be pure, but not yet…

To wisdom belongs the intellectual apprehension of things eternal; to knowledge, the rational apprehension of things temporal.

Saint Augustine (354 AD – 430 AD)

To a Catholic-Calvinist (surely every good hedge fund manager?), Saint Augustine is the fountainhead for all tracts on salvation and grace. His teachings seem particularly acute today as we attempt to trade a cycle within a cycle. This is a route littered with misunderstanding, and demands that we repeat our message again and again: if you think the future is inflation, buy US dollars and buy the US long-end.