AT A GLANCE: BOLTON’S TAKE ON MARKETS, THE WORLD AND WAR

Market view
Bolton struck a bullish tone in his half-yearly message to investors, despite a “most disappointing” six months.

He said a strong market recovery was "likely" over the next few months after sentiment plunged at the beginning of October to the lowest levels he had seen in his career.

“The most important reason that I remain optimistic about stock markets is my contrarian nature," he wrote. "However, valuations are very attractive versus history and Hong Kong directors' purchases of shares are the second highest they've been in the last 11 years (only higher in 2008). Everywhere risk is off.”

He went on to say that markets often move to “prove the majority wrong”.

Global economy
Bolton said there are "significant” differences between the current crisis and the fall-out from the collapse of Lehman Brothers in 2008.

He said the US authorities will throw everything they have at their economy and sees Europe as the "epicentre" of the current crisis.

A Chinese sell-side strategist warned Bolton that the future of the Eastern nation is "completely tied up with the future of Europe" but Bolton said a major recession is not inevitable. "Ultimately the politicians will have to decide between political union or breakup, but I believe this is still a few years away. In the short term, it remains to be seen whether the latest package is enough to calm markets."

Korea concerns
Bolton has not been shy of criticising nuclear-armed North Korea and in June he spoke of his fears that the South could retaliate against acts of aggression from Kim Jong-il, triggering a slump in Chinese equities.

Yesterday Bolton’s comments showed his worries have eased.

“During August, the Americans restarted a dialogue with North Korea which is a significant positive development. In September I closed the Kopsi put option position at a significant profit.”

The North’s uranium enrichment programme, which opens a second route to make an atomic bomb along with its plutonium programme, has long been a source of concern to the United Nations.