Wall Street Legends Sounding Alarm on Stocks

“The biggest names in finance are coming around to a view that seemed unlikely a few weeks ago: Stocks are vastly overvalued.” This according to a recent Bloomberg article. The article notes comments from Stan Druckenmiller who earlier this month characterized the prediction for a V-shaped recovery as a “fantasy.” David Tepper has reportedly said that equity valuations are “nuts,” and Bill Miller, Paul Singer and Paul Tudor Jones have all echoed doubts about the… Read More

European Stocks Look Appealing Compared to U.S. Shares

Investors shying away from stretched stock prices in the U.S. are “gravitating toward Europe for cheaper bargains as the trade matures,” according to a recent Bloomberg article. Morgan Stanley equity strategists raised their 2017 earnings-per-share growth forecasts for the MSCI Europe Index to 16% from a previous projection of 12%, the article reports. According to strategists at Societe Generale SA, the S&P 500 has “limited potential for returns over the next couple of years compared… Read More

Carlson of Ritholtz Says Investors Should Look Long-Term

With the inauguration ink still damp, investors might be trying to predict what Trump’s first 100 days will have in store. In a recent Bloomberg article, Ben Carlson of Ritzholtz Wealth Management writes, “Intelligent investors, however, understand that the long-term is the only time horizon that matters.” One of the best ways to look ahead, according to Carlson, is by “setting reasonable expectations.” To do so, he writes, investors should lower their expectations for future… Read More