-
Clive Essence warned that stocks may be overvalued and that bond markets are pointing to a major recession.
-
AQR boss fears a financial crisis, Warren Buffett says and volume traders have similarities.
-
Asness is concerned about commercial real estate and optimistic about cheap stocks.
Stocks may be booming It has the sense of touch With economic reality, bond markets Stagnation screamsand commercial real estate He could be in troubleCliff Assness warned.
The billionaire investor and founder of AQR Capital Management also fears a financial crisisAnd See the similarities Between Warren Buffett and quantitative traders, you expect cheap stocks to outperform in the coming years.
Made comments during finale episode Bloomberg Wealth with David Rubinstein.
Here are the 8 best Asness quotes, slightly edited for length and clarity:
1. “We raised a billion dollars. And through diligence, hard work, and some good advocacy, we turned that into half a billion dollars.” (Asness was reminiscent of what he told people 18 months after he launched AQR.)
2. “Almost all the time our job is about brains. Once every 20 years, it’s another b word.” (He was stressing the need for investors to have conviction in their positions, even when they lag behind the market by several years.)
3. “My biggest concern is that stocks and bonds seem to be taking a very different view. Bonds are priced at multiple, severe markdowns over the next year or two. This is a prediction of a recession, not a mild recession. Stocks are whistling through the graveyard.”
4. “If inflation stays flat, or declines because we’ve entered a non-trivial recession, it’s equities that I think are a scary place to be. They’re not priced consistently with bonds, and we’ll find out who’s right next year.”
5. “I worry about a financial crisis because it’s so unpredictable. I don’t think anyone wants a financial crisis. You think you’re going to do well, and something bounces back, and you don’t.”
6. “Commercial real estate, and the banks that deal in that, can be a nerve-wracking place – how does that change in cities. I’m concerned enough to put it on my list of concerns.”
7. “No one would call Warren Buffett a quantitator. However, he is very attached to what a quantitator would call the value factor, the low risk factor, and the profitability factor. He buys companies that make a lot of money, and don’t take a lot of risk. And then he looks for a price. Appropriate “.
8. “I’ll tell you what I do with my own money and my kids’ money. We have our money very highly exposed to this long-term, short-value trade I’m talking about. It’s not a complete portfolio. But I ‘eat for myself’.”
Read the original article at Business interested