Bob Prince, who helps oversee the world’s biggest hedge fund at Bridgewater Associates, said the world was seeing a rebalancing of wealth that was largely favoring Asia. “There’s a massive wealth rebalancing going on in the world,” Prince, co-chief investment officer at Bridgewater, said in a Bloomberg Television interview. “There’s a rebalancing between the western hemisphere and the eastern hemisphere in Asia, and there is a rebalancing between asset holders and debtors.” Prince said that Bridgewater currently favors Asian assets “a lot” across currencies, bonds and stocks. He added that “the rebalancing in the world is going in that direction, but the pricing is actually in the other direction.” `
- Aug 4, 2021
- 1 min read
Updated: Aug 5, 2021
In today's Vault Talks, we hear from legendary investor Bill Miller.
In response to questions about the current bull market, "My concern is not that the market is too expensive or that rising interest rates at the long end, if they continue, will put pressure on valuations, or that new supply via SPACs and IPOs will drain demand from the broader market, or that inflation will prompt the Federal Reserve to tighten sooner than the market anticipates" said Bill Miller, chairman of Legg Mason Capital Management.
Later, the legendary investor was asked about current valuations. - "My concern is that the market goes up far more than even ardent bulls expect, making the vast majority of stocks unattractive even for those with much longer time horizons than the typical market participant. I don’t think we are close to that yet since we can find plenty of stocks out there that look quite attractive even on conventional valuation metrics such as price/earnings ratios. Just to be clear, after a secular bull market that began in March 2009 and has continued for more than a decade, there are also plenty of names that appear overpriced even if optimistic assumptions prove true" said Miller.
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- Aug 2, 2021
- 1 min read
Updated: Oct 17, 2021
Fund Manager, Noel Winfrey of The Midtown Trade Group has underlined his conviction that it's nearly impossible to know where inflation is headed, and said investors shouldn't upend their portfolios in response to the current stream of macro forecasts.
Investors have a great deal riding on the prospects for inflation, since a higher level leads to higher interest rates and lower asset values, the MTG co-chairman said in his interview with Chicago Vault.
But as for whether the present high level of inflation is permanent or transitory, as the Federal Reserve believes, "it's nearly impossible to know the answer," said Winfrey.
"I consider anything anyone says today about inflation in the coming years to be 'opinion or speculation'... or, as I'd say, 'guesswork,'" he said.
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