If you can count Warren Buffett amongst your admirers, you really are onto something we reckon. Thats Seth Klarman for you. Klarman, one of the most widely followed value investors, has used the analogy of the English movie Truman Show to describe todays markets. In the movie, the central character thinks he is living a peaceful suburban life only to realise later that hes nothing but the lead actor of a hugely popular reality show. Well, as per Klarman, it is Ben Bernanke and Mario Draghi who are playing the role of creators in todays market environment. And they have done nothing but artificially created a hugely profitable environment for investors. Unfortunately, every Truman knows that the environment is not what it seems like on the surface as per Klarman. But the mood is so euphoric and the profits so easy to come by that no one wants to get out. Will this continue forever, Klarman asks. Certainly not! When the show ends the Trumans are likely to be mad as hell and perhaps out of money as well, Klarman adds further. And hopefully there will be no sequels he concludes. Well, we couldnt have agreed more.
Posted on: Sat, 15 Mar 2014 05:14:23 +0000
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