In his quarterly letter to investors, Seth Klarman criticized the complacency that has seeped into the global markets. He said that investors have been seduced into a false feeling of calm. With stocks touching new highs, Klarman expressed his fear that the markets are marching straight in the direction of a crisis as this continued up-cycle sows the seeds for the next fall. Warning signs like consistently high inflation, strikingly low volatility and finally the revision of the U.S GDP to -2.9% in Q12014 seem to have gone unnoticed by the market. The letter said,
"Investors have clearly grown weary of worrying about risky scenarios that never seem to materialize or, when they do, don’t seem to matter to anyone...
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