Einhorn says it’s the most expensive stock market in decades; 30 to 50 times earnings
Buffett stock sales indicate now is not a great time to have a lot of equity exposure
The S&P 500 index actually fell on Tuesday, but still managed to close at its second-best level in history.
David Einhorn, the hedge-fund star who co-founded Greenlight Capital, isn’t thriving as the bull market turns three years of age. The Greenlight letter says it is by many measures the most expensive stock market since the founding of the firm, which was in 1996.
The firm points out that Warren Buffett has been among the best market timers the world has ever seen — closing a fund in the late 1960s, re-emerging near the market bottom in the early 1970s, selling many holdings ahead of the 1987 crash, capitalizing on the 2008 global financial crisis — and now has been in a selling mode.
The Greenlight letter points out it’s not just technology stocks with “nosebleed valuations” — pointing to mature, industrial businesses that trade for 30 to 50 times earnings.
Steve Goldstein MarketWatch 16 October 2024
Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing
Tillbaka till Wall Street och Stockholm 16 oktober 2024
https://englundmacro.blogspot.com/2024/10/wall-street-och-stockholm-16-oktober.html
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