Julian Robertson: “There’s A Bubble” And “It’s The Federal Reserve’s Fault”
Today we can add another investing billionaire – one of the original hedgers, Tiger Management co-founder Julian Robertson – who spoke to CNBC’s Kelly Evans, and stated in no uncertain words that the market is a bubble and that “it’s the Federal Reserve’s fault, and the Federal Reserves all over the world.”
KELLY EVANS: … I just wonder what you think generally of where we are in the equity market today, where we are in the stock market in terms of valuation.
JULIAN ROBERTSON: Well, we’re very, very high — have very high valuations in most stocks. The market, as a whole, is quite high on a historic basis. And I think that’s due to the fact that interest rates are so low that there’s no real competition for the money other than art and real estate. And so I think that’s why the valuations are so high. I think when rates do start to go up and the bonds become more attractive to investors, it will affect the margins.
KELLY EVANS: Do you think they’re dangerously high right now?
JULIAN ROBERTSON: Well, that’s a — you know, it’s pretty — they’re high.
KELLY EVANS: Is it the Federal Reserve’s fault or…
JULIAN ROBERTSON: Yes. It’s the Federal Reserve’s fault, and the Federal Reserves all over the world. I mean, in Germany, in order to buy a bond, until recently, you actually had to pay interest.
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