TT International – Markets Have ‘Growing Risk And Inadequate Potential Return’

Even though US equity markets have had a rocky first quarter, and economic data is mixed at best, the bullish attitude is still in high gear, and successful value investors across the board have warned that when the market is happy we should be cautious.

“Optimists argue that the US and Europe are gradually recovering, Japan is successfully combating two decades of deflation, monetary policy will remain loose given that inflation is shackled, and though P/E ratios are high, they are not yet stratospheric,” writes Tim Tacchi, Chief Investment Officer at TT International, one of Europe's largest hedge funds,...