Smarter Than Seth

The greatest value investor of our time, Seth Klarman, is returning money to investors as he cannot find enough opportunities. If you are wildly bullish here, what are you seeing that Seth Klarman cannot?


Anonymous said...

Ahhh, but Seth is an investor and we are a world of traders. Just look at Bernanke's comments regarding the move up in equities over the past two months. The short term is good enough for him, it should be good enough for all of us.



Chaos said...

AAII poll numbers are off the charts. Bullishness is the highest in 4 years.
This group is never rigth. Upside is limited.

Tsachy Mishal said...

I find the AAII numbers the least helpful but those numbers today were eye popping.

Anonymous said...

Why is everyone fighting the fed?

what they are doing may have longer term consequences but for now take the free ride in the markets. They want to artificially push them up 50% more ..I'm in!

I will be buying any dips.

CHAOS! said...

We had an 18% rally. The Fed made that happen.
What happens next?
Almost all the sentiment indicators are showing high levels of bullishness. If everyone's bullish, who is left to buy?
At a minimum progress higher will be limited until the bullish sentiment is worked off to some extent.

Anonymous said...

The bid beneath this market is as strong as the best days of post March 2009. Tsachy has done a great job of highlighting how susceptible this market is to a sell-off (despite the seasonality). Yet even with the sov spreads blowing out in Europe and the Muni-spreads blowing out in the US; and despite the bomb that Cisco dropped yesterday and the miss by Disney today; futures sit a mere 1% off their highs.


I know, a perma-bear claiming the market is bulletproof is a sure sign of the apocalypse. But the fact is that it doesn't matter whether Tepper is right or wrong, the overwhelming majority of those managing real money agree with him, obviously, or we wouldn't still be sitting up against 2 year highs.

Good luck to all,


Anonymous said...

looks like while u were watching all ur sentiments and not holding pain, u waited too long.

Anonymous said...

That is a very good question. Bear in mind, though, that the size of Baupost means that there are many things he can't do that the rest of us can. Also, he doesn't do very much shorting, so he expresses his bearish convictions by going to cash.