Although many investors are delighted with the returns they have been getting on stocks and other financial assets, there could be a brutal correction across financial markets, says billionaire hedge fund manager Seth Klarman, founder of the Baupost Group.
Market gains were overblown in 2013, he said. "Any year in which the S&P 500 jumps 32 percent and the Nasdaq 40 percent, while corporate earnings barely increase, should be a cause for concern, not for further exuberance," Klarman said in a recent letter to clients that was obtained by the Financial Times.
"On almost any metric, the U.S. equity market is historically quite expensive," he noted, pointing specifically to Netflix and Tesla Motors.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
