Today marks the anniversary of the 2009 March 9 market low and apparently people think that is significant. Whitney Tilson managing partner T2 Partners went to CNBC to discuss what is ahead for the stock market.
Tilson was credited for calling the market low as “the opportunity for the generation”. But that was last 12 months, and it is behind us.
Looking ahead, Tilson thinks S&P500 is stretched in its valuation level. Market has gone from 25% discount to its long-term average P/E ratio to about 30% above average. In his portfolio, he has gyrated into large cap high quality issues. On the other hand, he does not think it is a great time to short stocks either. There is simply too much liquidity around which tends to bid the low quality stocks to much higher.
In the interview, Tilson discussed his short position in Palm Inc. (PALM) and long positions in Yahoo! (YHOO, Financial) and Pfizer (PFE, Financial).
Tilson was credited for calling the market low as “the opportunity for the generation”. But that was last 12 months, and it is behind us.
Looking ahead, Tilson thinks S&P500 is stretched in its valuation level. Market has gone from 25% discount to its long-term average P/E ratio to about 30% above average. In his portfolio, he has gyrated into large cap high quality issues. On the other hand, he does not think it is a great time to short stocks either. There is simply too much liquidity around which tends to bid the low quality stocks to much higher.
In the interview, Tilson discussed his short position in Palm Inc. (PALM) and long positions in Yahoo! (YHOO, Financial) and Pfizer (PFE, Financial).
