Wall St Jumps $2 Trillion Since Trump… Hedge Fund Legend Sees ‘Bubble’
$2 trillion man? Market value added since Trump’s election win passes milestone
- The S&P 500 has added $2.04 trillion in market value since Trump’s election last November, said Howard Silverblatt, senior Index analyst at S&P Dow Jones Indices.
- Tech is up nearly 30 percent since the election, and has also added $1.019 trillion in value to the S&P in the time period, the most out of any sector.
Like it or not, the U.S. stock market has performed exceptionally well since President Donald Trump was elected.
The S&P 500 has added $2.04 trillion in market value since Trump’s election last November through Monday, according to Howard Silverblatt, senior Index analyst at S&P Dow Jones Indices. The benchmark rose to a record on Monday and then another in early trading Tuesday.
Call it whatever you want, but from the election the $SPX is up 16.29% (18.33% TR) or $2.04 trillion, with income tax reform coming to bat
— Howard Silverblatt (@hsilverb) September 11, 2017
Tiger Management’s Robertson says ‘we are creating a bubble’ in stocks
- Hedge fund legend Julian Robertson Jr. of Tiger Management sees stock market valuations as “very high” and worries about a bubble forming.
- While Robertson says the market as a whole is expensive, he does not apply that to the leading tech stocks.
Hedge fund legend Julian Robertson Jr. sees stock market valuations as “very high” and worries about a bubble forming.
The Tiger Management founder made the comment Tuesday at the Delivering Alpha conference presented by CNBC and Institutional Investor.
Central banks including the Federal Reserve should get the blame for the high market valuations through their programs to keep rates low and make sure investors did not have other alternatives to get returns.
“The market as a whole is quite high on a historical basis,” he said. “I think that’s due to the fact that interest rates are slow low. But there’s no real competition for the money other than art and real estate.”
The Fed and others have kept rates low since the financial crisis in an effort to spur growth. The U.S. central bank is in the process of gradually raising rates, but the Fed benchmark is still low by historical standards.
“I think we need interest rates to appreciate, to go up, because I think we are creating a bubble,” he added.