Jim’s Mailbox

Posted at 9:26 AM (CST) by & filed under General Editorial.

He can tell you this now…because he is retiring!

Courtesy of JB.

Bill

There’s “Way Above-Average Speculation”, Retiring Boss Of Massive US Fund Warns Retail Investors To “Step Away From Risk”
December 27, 2021

Even The Fed has finally been forced to admit the market is trading at ‘elevated levels’, and is “vulnerable to large declines.”

So when the CEO of one of the largest active US fund managers tells investors to “step away from risk” to avoid being burned in increasingly speculative markets, it is perhaps time to start paying attention as the S&P makes it 69th record high this year, pushing its valuations to ’11’ on the Spinal Tap amplifier of ‘overvaluedness’.

$1.6 trillion fund group T. Rowe Price CEO Bill Stromberg, who is retiring at the end of the year, cautioned in an interview with the Financial Times that “over [the] last two years there has been a way above-average amount of speculation, adding that “we’ve been in a cycle where there has been very free-form risk-taking.”

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