Opinion: These 7 billionaires are worried about a stock-market correction

MarketWatch | 8/9/2017 | Jeff Reeves
bethtetleybethtetley (Posted by) Level 4
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By now, all investors should know the research about the follies of market timing.

But similarly, all investors should admit that a quest for outperformance by stock picking and active management will never end — particularly given that 2017 shows more than half of active funds are beating their benchmarks for the first time since before the Great Recession.

Host - Billionaire - Investors - Market - Conditions

So it’s worth noting that a host of big-name billionaire investors are pretty concerned about current market conditions.

Yes, there are tremendous benefits to passive, low-risk, long-term investing strategies. And obviously, some of the “best” investors on Wall Street often get things painfully wrong.

Hedge - Funds - Brakes - Dow - Jones

But when some of the biggest and most respected hedge funds are pumping the brakes as the Dow Jones Industrial Average DJIA, -0.15% and the S&P 500 SPX, -0.24% have hit new all-time highs this week (and the Nasdaq Composite COMP, -0.21% isn’t far off) … well, it seems plain irresponsible to simply write that off.

Here are what seven of Wall Street’s most iconic investors have to say about the market and the potential for a correction in the next several months.

Jeff - Gundlach - Exits - DoubleLine - Capital

Jeff Gundlach advises “moving toward the exits”: DoubleLine Capital CEO and bond guru Jeff Gundlach is reducing his positions in junk bonds, emerging-market debt and other lower-quality investments on a fear that investor sentiment may roll over in the near future with painful effects. That probably won’t manifest in a huge drop over a short period, Gundlach predicted, but it’s wise to prepare nevertheless. “If you’re waiting for the catalyst to show itself, you’re going to be selling at a lower price,” he told Bloomberg recently, instead recommending investors begin “moving toward the exits.”

Carl Icahn warns stocks are overvalued: Investing icon Carl Icahn has made plenty of bold bullish calls in recent years, including a winning bet on Herbalife HLF,...
(Excerpt) Read more at: MarketWatch
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