Seth Klarman, we worry macro, invest micro (my summation):
"We see today’s market as characterized by stretched valuations, deep complacency, and a host of looming risks. But we also know how hard it is to make macro forecasts.
"We see today’s market as characterized by stretched valuations, deep complacency, and a host of looming risks. But we also know how hard it is to make macro forecasts.
While we have significant concerns, we can also make a case that the U.S. economy will remain strong for some time, since corporate, consumer, and financial institution balance sheets are healthy.
Bonds at today’s yields provide scant returns, so equities remain the only game in town. Corporate stock buybacks continue to be a major driver of demand for equities. And pockets of the equity and private markets remain attractively priced.
Top-down, we are seriously concerned.
But bottom-up, looking at our holdings investment by investment, we see an attractive upside as well as a reasonably protected downside."
This is the only sensible way to invest!
But bottom-up, looking at our holdings investment by investment, we see an attractive upside as well as a reasonably protected downside."
This is the only sensible way to invest!
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