Fascinating interview on Bloomberg today. Not sure I agree with him, but he certainly has strong opinions and not afraid to voice them.
- The Fed “better not stop at 3%” (with the discount rate). If they don’t soon raise it to 5% or higher “they’re not doing their job”.
- The surreptitious release of the SC draft opinion contributes to the polarization and disfunction of our politics. He fears the country is becoming “ungovernable”.
- He sees equities as way overvalued.
- Inflation is here to stay.
- Investors are ignoring the negative implications of the war in Europe.
- He’s not predicting “stagflation.” However, it it developed it would result in “nothing working” in terms of investments.
- He’s been moving more and more into assets that provide inflation protection. Likes countries rich in natural resources.
- The individual investor - even those in retirement - “still loves equities”.
- Intermediate term bonds may offer better value than the S&P.
- The 60/40 (stocks/bonds) portfolio is outdated / unpopular today. Has been largely replaced by the 70/30 and “even the 80/20” by most investors.
- He recently spoke to Howard Marks. Marks agrees that with careful selection, there is some value in HY.
