Klarman Warns that Investors are Ignoring Risks

In a private letter to clients, Baupost Group CEO Seth Klarman suggests that, instead of asking themselves why they should sell in today’s market, they should ask whether they can afford not to, according to a recent article in Business Insider. Klarman’s concern, the article says, is that investors are overlooking risks associated with low volatility and stretched valuations, and that “growth stocks—those that represent high quality companies—are appreciating far ahead of value shares, which… Read More

Allianz’s El-Erian Says to Scale Back Risk

Can President-elect Trump deliver on fiscal stimulus and job growth after taking office next month in the face of a fractious American Congress? The question, posed in last week’s Bloomberg, is addressed by Mohammed El-Erian, Bloomberg columnist and chief economic advisor at Allianz SE, who says reducing risk by increasing cash holdings might be a good idea. Trump’s promises for tax cuts and spending increases are bolstering growth forecasts, but El-Erian believes that the currently… Read More