Legendary Investor Bill Miller Says Stocks are fairly valued
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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