Seth Klarman On “Born Bulls”, Bitcoin, & “The Truman Show” Market

The stock market, heading into 2014, resembles a Rorschach test – “what investors see in the inkblots says considerably more about them than it does about the market.” Someday, financial markets will again decline. Someday, rising stock and bond markets will no longer be government policy – maybe not today or tomorrow, but someday. Someday, QE will end and money won’t be free. Someday, corporate failure will be permitted. Someday, the economy will turn down again, and someday, somewhere, somehow, investors will lose money and once again come to favor capital preservation over speculation. Someday, interest rates will be higher, bond prices lower, and the prospective return from owning fixed-income instruments will again be roughly commensurate with the risk.

via Seth Klarman On "Born Bulls", Bitcoin, & "The Truman Show" Market .

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