Julian Robertson Worried About Bubbles Bursting ~ market folly

Monday, April 20, 2015

Julian Robertson Worried About Bubbles Bursting

Tiger Management's Julian Robertson recently was interviewed by Fox Business and touched on bubbles developing, interest rates, the US Dollar and select US equities.

The thing he said he's worried about most are bubbles developing: specifically, the bubble in bonds created by the Federal Reserve's actions.  He notes it's a hard market to save in and an easy market to borrow in, and those things aren't conducive to long-term prosperity.

Robertson thinks the equity rally will be stalled by an increase in interest rates.  He expects a rate increase this year (warranted by the economy).  "I don't think it's at all ridiculous to think an '08 size (decline)."

Tiger Management's founder also sees the US Dollar strength continuing.

As to what stocks Robertson likes, Gilead Sciences (GILD) was mentioned.  He said he likes growth companies and notes that these types of plays (like Apple, Google, Facebook) used to trade for such high multiples back in the day, but nowadays are trading for cheap.

Lastly, he singled out Amazon (AMZN) as a company he finds fascinating because it doesn't have considerable cashflow and it's "wild that it gets this kind of multiple."  He acknowledges it's done well, but he's short, saying AMZN "don't care" about profitability.

Embedded below are the videos of Robertson's appearance on Fox Business:

Video 1

Video 2

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