Jeremy Siegel: “Fairly Valued” Market Presents Two Big Risks

A recent article in Advisor Perspectives summarizes an interview with Wharton professor, Wisdom Tree senior investment strategy advisor and author Jeremy Siegel. Here are highlights from Siegel’s comments: Valuations: While last year Siegel said that the market’s fair value was about 17- to 18-times earnings, he said “I’d notch that up a little bit because interest rates are much lower than they were a year ago, particularly long rates, which are so important for equity… Read More

Seth Klarman’s Bleak Warning Chills Davos

In his 22-page annual letter to investors, Baupost Group’s Seth Klarman warned that increasing political and social tensions around the globe may end in an economic disaster. This according an article in The New York Times that describes the letter as a “warning shot.” “It can’t be business as usual amid constant protests, riots, shutdowns and escalating social tensions,” Klarman wrote in the letter, which was reportedly shared during the annual meeting of the World… Read More

Byron Wien on Potential Upsets to Economy

In a recent article for Barron’s, Blackstone Advisory Partners vice chairman Byron Wien shares his insights regarding factors that could potentially upset the economy. Giving an overview of the global economic and political climate, Wien highlights the general rise in populism and shares his view on the Trump presidency, Brexit vote, EU, and the economic factors affecting several European countries including France, Germany, Spain and Italy. Regarding the financial markets, Wien writes that “abundance of… Read More

Dalio and Gundlach Say Emerging Markets are Risky

A host of concerns across the globe are raising red market flags for heavy-hitting investors such as Ray Dalio and Jeffrey Gundlach, says a recent Bloomberg article. Among the concerns; rising global turmoil and terrorist activity, valuations that “no longer compensate for potential flareups in North Korea and Venezuela,” and unpredictability on Wall Street. Emerging market shares are among the assets causing worry, given that they are yielding less that U.S. junk bonds for “only… Read More

Singapore’s Sovereign Wealth Fund Warns Investors About Looming Market Risks

Singapore sovereign wealth fund GIC is warning investors that low readings in the market’s “fear gauges” could be signs of trouble down the road, according to aBloomberg article from earlier this month. One of those gauges, the VIX, is reported to have recently hit the lowest level since 1993, even lower than those seen in 2007. GIC’s chief executive officer Lim Chow Kiat says that the level of uncertainty is “very high” versus the low… Read More