TPG co-founder and Private Equity Titan Jim Coulter is warning savvy investors to be a bit more skeptical about the seemingly endless Trump bull-run stock-market rally raging since the 2016 election.
Coulter told CNBC he's worried the “Trump bump” in the market and the economy is only setting up a bigger fall down the road.
"My biggest concern is how little concern there is," Coulter told CNBC.
Stocks have continued to climb higher as investors bet that President Donald Trump's tax reform will boost companies’ future earnings. The S&P 500 Index climbed 6 percent this month after jumping 19 percent last year.
"I think at this time in the cycle you invest in something different. You invest in companies like Uber, where the company's progress and technological progress, not the economy, will drive returns," he said.
"If the party goes on longer, the next day may feel worse," says Coulter.
"As an investor, I'm concerned as we move from monetary policy to fiscal policy," Coulter said "I'm not commenting on the near term. I'm commenting on our view, which is three years out.”
To be sure, Coulter isn't the only economic guru to express concern.
For one, James Gorman, the chief executive officer of Morgan Stanley, said he’s more worried that the stock market has reached record highs in recent months with technology stocks like Facebook Inc., Amazon.com Inc., Google parent Alphabet Inc. and Netflix Inc. trading at very high multiples.
Morgan Stanley operates the largest equities trading and capital markets operation in the U.S.
“You’ve got markets at record highs, and, as we know, these things don’t go in a straight line,” Gorman said Wednesday in an interview on Bloomberg Television in Davos.
Blackstone Vice Chairman Byron Wien warns savvy investors that a correction is coming in the first half of 2018.
“Right now we are in a very frothy period,” Wien recently told Fox Business Network.
“Right now I think the market is getting dangerous.”
Wien warns investors that they shouldn't become overconfident.
“I see investor sentiment at an all-time high, I see interest rates rising, I see more inflation on the horizon,” Wien said.
“I see a plethora of good news, but I see people discounting it. Now we’ve gotten to the point where valuations are extreme. Don’t get me wrong I think we’ll have a positive year in 2018, but right now I’d say we are vulnerable,” he warned.
For his part, Trump says the mainstream liberal media twists the facts and distorts reality.
"Do you notice the Fake News Mainstream Media never likes covering the great and record setting economic news, but rather talks about anything negative or that can be turned into the negative. The Russian Collusion Hoax is dead, except as it pertains to the Dems. Public gets it!" the president recently tweeted.
(Newsmax wire services contributed to this report).
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