Bill Miller: 'The Worst Has Passed' [View article]
Bear's please read the article before trashing someone. Sure Bill Miller's recent track record has been terrible but he is smart guy and can't be wrong for ever.
"Many worry that this rally is just a cyclical bounce in an ongoing bear market and they remain quite cautious in committing capital to risk assets. Assets in money market funds recently exceeded those in general equity funds for the first time in over 15 years. In contrast, at the market peak in October 2007, assets in equity funds were more than 3x greater than the assets in money market funds. The return on this mountain of cash rounds to zero, which is good when stocks and bonds are falling, but far from optimal when they are rising. Although I expect credit spreads2 and risk aversion to remain well above the averages of the past decade, there is plenty of room for them to narrow and for equities to move higher as this cash gradually moves out the curve in search of better returns."
Bill Miller: 'The Worst Has Passed' [View article]
"Many worry that this rally is just a cyclical bounce in an ongoing bear market and they remain quite cautious in committing
capital to risk assets. Assets in money market funds recently exceeded those in general equity funds for the first time in over
15 years. In contrast, at the market peak in October 2007, assets in equity funds were more than 3x greater than the assets in
money market funds. The return on this mountain of cash rounds to zero, which is good when stocks and bonds are falling, but
far from optimal when they are rising. Although I expect credit spreads2 and risk aversion to remain well above the averages of
the past decade, there is plenty of room for them to narrow and for equities to move higher as this cash gradually moves out
the curve in search of better returns."