Legendary investor Bill Miller, in a 2Q 2021 Market Letter, has defied concerns of overvaluation in equity markets and sees them as fairly valued.
Miller’s observations are a contrast to other investors who predict a market crash, due to concerns of overvaluations.
Miller says most stocks are priced at a level to offer a considerable market rate of return after a remarkable recovery from the lows hit during the Covid crisis.
The investor says, factoring a 7% growth estimate, higher company earnings, and a jump in net worth of US households could support stocks.
Miller sees inflation as the only challenge to recovery, but notes that pandemic inspired boom in particular commodities is now waning.
On cryptocurrency sustainability, Miller says it is an open question on whether bitcoin will endure expectations of being a store of value.
Miller’s flagship fund has beaten the market for about 15 years, but fell by 55% at the height of the 2008 financial crisis. SPY is down -0.19% on pre-market, CSI 300 is up +0.18%, DAX is down -0.073%.