When billionaire hedge fund manager Seth Klarman looks at the investing world today, he sees asset bubbles pretty much everywhere.
Historically low interest rates, even zero rates, have precipitated that bubble."
With the investing world now ruled by trendy bubble-like investments such as Bitcoin and meme stocks, Klarman said the need for a sound, practical approach to investing is vital.
In a letter to clients at the end of 2022, he accused the U.S. central bank of constructing a "financial fantasyland" of artificially low interest rates and liquidity pumping.
In the current environment, investors face challenges relating to economic uncertainty and a central bank holding interest rates high to battle inflation.
Persons:
Seth Klarman, we've, Klarman, Benjamin Graham, David Dodd, You've, Warren Buffett — Buffett, Columbia University —, Graham, Dodd
Organizations:
CNBC, Cornell, Columbia University, Buffett, Liberty, Federal Reserve
Locations:
Boston, U.S