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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: hueyone who wrote (48420)	10/29/2001 12:01:42 AM
From: Wyätt Gwyön	Respond to of 54805

hi Huey, I found the AQR essay Mucho brought to the thread earlier today to provide many interesting counter arguments lucky you--J. Clements has a talk with Asness in today's WSJ (that is, the Sunday Journal online). this guy Cliff Asness has a good way of putting things. i agree with him entirely in the quote below. i don't think the market has to crash at all; i just think investors have to accept very low premiums over bonds despite the riskiness of stocks. Asness really cuts to the chase here. interactive.wsj.com "There are two choices going forward," he reckons. "One, investors get it that stocks are not as risky as we thought and we don't have a crash. The downside is, returns are low. The other scenario is that investors are not willing to accept 1% to 2% a year over bonds. If they say, 'I'd rather have bonds at 5 1/2% than stocks at 6 1/2%,' then we get a crash." for anybody wondering who this Asness guy is, and if you missed the earlier article by him, here's the URL again: aqrcapital.com there are some other excellent articles on his site as well, going back to his famous Bubble Logic paper. he's not without a sense of humor, either: I use regular earnings as reported by S&P and gathered by DataStream. However, as an aside, please note that “pro-forma” I’m 6’2” and have all my hair (those who know me will understand that under GAAP standards I’m somewhat less impressive).