What a time to be alive. It seems like every day the stock market is reaching new all time highs and have been for many months now. While all may seem well in the world, Julian Robertson, founder of Tiger Management, has a different vision of what is coming next.
In an interview with CNBC, Robertson warned that “stock market valuations as “very high” and worries about a bubble forming.” He justified this by adding that “The market as a whole is quite high on a historical basis, I think that’s due to the fact that interest rates are slow low. But there’s no real competition for the money other than art and real estate. I think we need interest rates to appreciate, to go up, because I think we are creating a bubble,” he added.
If Robertson, one of the greatest hedge fund managers of this generation, sees this as a possibility for developing, keep an eye on the markets for any signs of a rapid decline. They could mean a big payout for options traders but regular investors should be on their toes.
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