Tags: Ross | stocks | sell | country

Wilbur Ross: 'We've Sold 6 Times as Much as We've Bought This Year'

By    |   Thursday, 10 July 2014 10:35 AM

With stock markets around the world hitting historic highs recently, many financial experts argue that now is a good time to take some profits.

Star distress-investor Wilbur Ross, CEO of WL Ross, apparently agrees.

"On balance, we've been a seller. We've sold six times as much as we've bought so far this year . . . everywhere," he tells CNBC.

Editor’s Note:
New Warning - Stocks on Verge of Major Collapse

U.S. stocks are expensive, and "with markets at all-time highs, it shouldn't be surprising that there are more things that are attractive to sell than to buy," Ross notes.

The S&P 500 reached an all-time peak last Thursday and stood within 2 percent of that level this morning — at 1,955. On the valuation front, the index had a trailing price-earnings ratio of 19.4 last Thursday, up from 18.4 a year ago, according to Birinyi Associates.

So where should you put your money?

"We've kind of run out of big countries to invest in, so we're now going to the smaller ones," Ross explains, adding that he is looking and/or investing in Spain, Greece, Portugal and Cyprus.

Some commentators worry about a stock crash. Arturo Bris, professor of finance at IMD business school in Switzerland, says that will happen and may cause a financial crisis.

"In the last year, stock markets have performed unrealistically well and at some point the situation will explode," he writes in a commentary provided to Moneynews.

"If markets were to revert to a reasonable level with regards to earnings, there will be a stock market drop of between 30 and 35 percent."

Editor’s Note: New Warning - Stocks on Verge of Major Collapse

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InvestingAnalysis
With stock markets around the world hitting historic highs recently, many financial experts argue that now is a good time to take some profits.
Ross, stocks, sell, country
280
2014-35-10
Thursday, 10 July 2014 10:35 AM
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