Bill Miller on market correction
Previously, we discussed legendary value investor Bill Miller’s faith in the equity market and views on possible risks. In this part, we’ll look at his views on this year’s market correction. The broader-market S&P 500 (SPY) fell 11% from its all-time high of 2,872.87 on January 26 to 2,553.80 on April 2.
In February, the NASDAQ Composite (QQQ), the S&P 500, and the Dow Jones Industrial Average (DIA) fell, mainly due to stronger-than-expected inflation and wage growth. The expectation of a faster rate hike process dragged down investor sentiment.
In March, Donald Trump’s various announcements about the imposition of import tariffs on steel, aluminum, and Chinese products increased global trade war concerns, causing major indexes to correct. In Miller’s interview with CNBC, he added that “the 10% correction already experienced seems to me to adequately discount the visible risks noted above, leaving the market poised to go up if these risks either dissipate or fail to morph into more serious troubles.” In the next part of this series, we’ll analyze Miller’s views on Facebook (FB).