Klarman warns of impending asset price bubble: FT.com
Earlier in the week, an article by Miles Johnson, Hedge Fund Correspondent for the Financial Times, caught our interest. Reporting on Seth Klarman, head of Baupost Group and “one of the world’s most respected investors”, Johnson writes of Klarman’s grave warning of an imminent asset price bubble. The highly regarded value investor (and bestselling author) is quoted as saying: “Any year in which the S&P 500 jumps 32 per cent and the Nasdaq 40 per cent while corporate earnings barely increase should be a cause for concern, not for further exuberance”. Read the article here (if you’re an FT.com subscriber).
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Tom Hunt
:
Here’s the article for those who dont have a FT.com account.
http://www.cnbc.com/id/101479544
Brad
:
So what’s your view (if any) on his comments Roger?
Roger Montgomery
:
Our process tells us to be about 25 to 30 cash. Such a heavy cash weighting suggests better value might be around the corner!