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 (NYSE: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.