"Well the globe is divided between essentially super bears and super bulls. I belong to the super bears but I have equity exposure because you have to think it through and you are very negative about the world and you do not want to hold everything in cash. Basically since 2009, we have not reduced but increased the debt level and we have in addition created a rise in inequality.
The inequality benefits the very wealthy people but the wealthy people as a percent do not spend a lot of money and so the economy in this environment of increased wealth inequality is not performing particularly well.
The markets have gone up substantially, we have an asset bubble driven by credit and obviously, the markets have become quite vulnerable. Having said that, if I look at the markets around the world what is striking is how expensive US stocks are compared to European companies and especially compared to companies in emerging economies. I would prefer to own international equities, European stocks and Asian stocks compared to say US stocks."
via http://economictimes.indiatimes.com
