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Matthias Knab, Opalesque: Mauldin Economics writes on Harvest Exchange:
The market cap of FAANG (Facebook, Amazon, Apple, Netflix and Google) are up $260 billion since March 1. Meanwhile, the market cap of the other 495 companies in the S&P 500 are down $260 billion.
This is a textbook example of unsustainable growth, yet it has largely fallen on deaf ears for many investors.
Speaking at the Mauldin Economics' Strategic Investment Conference, Mark Yusko, Founder and CIO of Morgan Creek Capital Management, dissected this and the other biggest risks-along with opportunities-in financial markets today.
Warren Buffet, Highest Cash Position Since 2007 - see chart on Harvest
When asked what investors should be doing in today's markets, Yusko responded, "cash is king. What cash does is it gives you optionality, it allows you to buy things when they go on sale."
"If you look at the world's greatest investors…. Warren Buffet, Seth Klarman, George Soros… every cycle you'll see their cash [holdings] go up."
"Buffet has the highest cash [position] he's ever had today, in dollars… in percent he had a little more in '07, and what did he do in '09? Bought the stuff that was on sale." Today, Buffet's Berkshire Hathaway has around $95 billion in cash, the highest position since 2007.
It's Time to Hedge
Yusko kicked off his SIC 2017 pres...................... To view our full article Click here
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