Esteemed money manger Whitney Tilson said stocks are now fairly valued and should remain steady as a result.
Asked in an interview with Forbes magazine publisher Steve Forbes if the market is now where it should be, Tilson responded, “Yeah.”
The head of T2 Partners said the economy probably won’t bottom for another year, in contrast to the consensus forecast of six months.
While Tilson felt comfortable buying stocks at their 12-year low in March, he feels less confident about purchasing stocks now. That’s because they’ve rebounded 33 percent from March.
“Today there aren't any more 80 percent certainty bets out there,” he said. “The stock market's up 35 percent; that's three years' worth of gains in three months in our view. And so we've been trimming our long portfolio.”
Tilson isn’t dumping stocks en masse.
“But we've gone from in the hedge funds we manage, 100 percent long, 50 percent short to something closer to 80 percent long, 50 percent short,” he said. “We're still keeping a lot of hedging in place because we think there is downside risk. But also we like the stocks we own enough to maintain a net long position.”
Some experts are more pessimistic about stocks than Tilson.
“The bears have control for the short-term,” Tom Wirth, senior investment officer at Chemung Canal Trust in Elmira, N.Y., told Bloomberg.
“We’re having a pullback because people are starting to believe it might take longer for an economic rebound.”
© 2015 Newsmax. All rights reserved.