Bill Miller of course is famous for beating the S&P 500 for 15 consecutive years ending in 2005. Then of course he had no clue about the housing bubble and was buying Bear Stearns right up to the end.
Today Miller thinks stocks are very cheap relative to bonds and interest rates have to move a long way before bonds deserve any consideration over stocks.
He thinks free cash flow yields on the market are in the 7% range and that balance sheets are at all-time best levels.
The headwinds that we have been facing (unemployment, lack of lending) have turned into tailwinds.
Today Miller thinks stocks are very cheap relative to bonds and interest rates have to move a long way before bonds deserve any consideration over stocks.
He thinks free cash flow yields on the market are in the 7% range and that balance sheets are at all-time best levels.
The headwinds that we have been facing (unemployment, lack of lending) have turned into tailwinds.
