{"id":569828,"date":"2010-05-19T06:42:09","date_gmt":"2010-05-19T10:42:09","guid":{"rendered":"http:\/\/www.businessinsider.com\/seth-klarman-stocks-2010-5"},"modified":"2010-05-19T06:42:09","modified_gmt":"2010-05-19T10:42:09","slug":"seth-klarman-stocks-will-have-zero-return-for-a-decade","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/569828","title":{"rendered":"Seth Klarman: Stocks Will Have Zero Return For A Decade"},"content":{"rendered":"

\"Seth<\/p>\n

Legendary fund manager Seth Klarman of the Baupost Group made some rare public comments recently at the CFA Institute in Boston.  Suffice it to say that he does not have a bright and sunny view of the world.<\/p>\n

Some choice quotes relayed by Aaron Pressman at Reuters:<\/a><\/p>\n

* “Given the recent run-up [in stocks], I’d be worried that we’ll have another 10 years of zero returns.”<\/p>\n

* “I’m more worried about the world broadly than I’ve ever been in my whole career.”<\/p>\n

* Current market conditions remind Klarman of a Hostess Twinkie snack cake because “everything is being manipulated by the government” and appears “artificial.”<\/p>\n

* Publicly traded real estate investment trusts…have “rallied enormously” and are “quite unattractive.”<\/p>\n

* Inflation is a risk that Klarman said he is particularly concerned with given the government’s high rate of borrowing to bail out the financial system. Baupost has purchased far out-of-the-money puts on bonds to hedge the risk, he said.<\/p>\n

Baupost has 30% of its assets in cash.<\/p>\n<\/p>\n

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