James Montier: The Stock Market Is Hideously Expensive

James Montier: The Stock Market Is Hideously Expensive by Mark Dittli, Finanz und Wirtschaft

James Montier, the outspoken value investor and member of the asset allocation team of Boston-based GMO, talks about dangerously high valuations and the virtues of holding dry powder.

Four words seem to define the current mood in financial markets: There Is No Alternative. Yes, equity markets might be somewhat expensive, but considering the alternatives – bonds and cash –, they are still the best investment. The correction in October turned out to be a mere hickup in a solid bull market. But James Montier remains skeptical. The value investor and member of the asset allocation team at Boston-based asset manager GMO sees the stock market in...