Tilson is saying what I have been saying, namely that March saw an increased number of attractive buys, but most of these are now fully priced. As a result, he is selling equities – even building up his net short positions.
Unlike bear turned bull Richard Bernstein, Tilson says that after a huge 60%+ run up which saw a trebling or quintupling of some beaten up shares like Huntsman, you need to be cautious. Invest in high quality and low beta, he says – exactly the opposite of what Bernstein is now saying.
Despite some positive earnings reports from the likes of Toll Brothers (TOL), the sector he hates the most right now is home builders because of a 2-year inventory overhang.
Below Tilson talks to Bloomberg’s Carol Massar. The video runs just over 3 minutes.