Superinvestor Bulletin Blog | Superinvestor Jeff Ubben Says The Market Is Overvalued - Is Returning $1.25 Billion To Investors | Talkmarkets
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Superinvestor Jeff Ubben Says The Market Is Overvalued - Is Returning $1.25 Billion To Investors

Date: Saturday, April 15, 2017 1:03 PM EST

Dear Superinvestor Bulletin Follower,

The warnings continue roll in about an expensive stock market.

ValueAct Capital's Jeff Ubben is not just talking about how expensive the market is, he is adjusting his plans because of it.

Image result for jeff ubben

Source: Forbes

ValueAct will be returning $1.25 billion to investors on May 1 as detailed in a letter recently released.

Ubben's comments included the following:

"The broader market context is explicit to us. The S&P 500's median P/E ratio is 18 times. For most high quality companies we follow, it is much higher.......These valuations can only be justified by assuming cyclically high corporate margins will persist, a certainty of lower corporate tax rates and a risk-free rate that stays near all-time lows. We are skeptical of all of the above."

In other words only perfect conditions will do in order to justify current market valuations. The risk is clearly skewed to the downside.

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Have a great weekend!

Reese Morgan

Editor, The Superinvestor Bulletin

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